The 439% miracle collapses! Former OpenAI genius is "precisely hunted" by Citadel, as Wall Street stages a brutal "big fish eats small fish" drama

Glonghui July 31｜Wall Street is witnessing a dramatic “big fish eats small fish” saga. On July 30, the AI flagship hedge fund Situational Awareness, founded by former OpenAI security researcher Leopold Aschenbrenner, suffered a brutal liquidation due to high leverage amidst a sharp crash in the AI sector. Its public equity holdings, valued at up to several billion dollars, have been scooped up by competitor Ken Griffin’s hedge fund giant Citadel.Reportedly, since Situational Awareness was established in 2024, Leopold has earned a fervent cult following among investors for his foresight into the AI industry. From the beginning of this year to the end of June, his fund’s precise bets once generated an impressive return of up to 439%.On Reddit communities and major retail forums, this event has sparked massive speculation about market manipulation. Many retail investors and analysts believe that Citadel, on one hand, fueled hawkish rumors about a July rate hike by the Federal Reserve (FUD) to pressure the market and trigger a broad sell-off; on the other hand, when bulls faced forced liquidations after the price plunge, Citadel stepped in as a “savior” to scoop up assets cheaply. Through this calculated short-selling and then reverse buying at low prices, Citadel profited on both sides.