Leopold Aschenbrenner, 25, founder of the San Francisco-based hedge fund “Situational Awareness,” told investors in a July 30 letter that his fund lost 67% in July alone. He stated, “We came much closer to permanent capital loss than an acceptable level,” and attributed the losses to positions moving rapidly against the fund, dried-up market liquidity, and short sellers targeting his positions, calling it “essentially a bank run—a vulnerability breeding greater vulnerability.” All leverage has been removed from the portfolio, and the fund has not closed or liquidated. Despite the July disaster, the fund’s annual return is still around 80% positive. On July 29, Aschenbrenner called aggressive trading firms to prevent a margin call; according to the Financial Times, Citadel founder Ken Griffin was deeply involved in negotiations that continued past midnight, and Citadel secured the deal the next morning. The fund’s assets, which were $45 billion in early July, shrank to about $10 billion by the 30th, just two years after its founding. Aschenbrenner, born in Berlin, Germany, graduated high school at 15 and earned a bachelor’s in economics and mathematical statistics from Columbia University at 19. He joined FTX Future Fund in February 2022.