The Leverage Trap: How AI Hedge Funds Are Betting Against Themselves The recent collapse of Leopold Aschenbrenner's $45 billion AI hedge fund, Situational Awareness, has sent shockwaves through the financial world.
On the surface, it appears to be a classic case of hubris and poor risk management.
But scratch beneath the surface, and you'll find something more insidious at play – the leverage trap that's snaring even the most sophisticated players in the market.