Citadel puts $45 billion hedge fund out of business

@sammystockz

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Citadelseen in 3 videos →

Why it worked

The video tells a dramatic story of a young prodigy's spectacular rise and fall in the financial world, highlighting themes of high-stakes trading, market volatility, and the power of major financial institutions. The narrative is compelling and provides a clear lesson about the risks of leverage.

Summary

A young hedge fund owner, Leopold Ashenbrenner, made billions using high leverage on AI chip stocks, but a market downturn and a surprise rate hike announcement from the Fed caused his fund to become insolvent. Citadel, led by Ken Griffin, capitalized on this by buying Ashenbrenner's portfolio at a low price, only for the market to rebound shortly after when the Fed decided against a rate hike.

Structure

1Introduction of Leopold Ashenbrenner and his successful hedge fund.
2Explanation of his high-leverage strategy and initial success.
3Market downturn and margin calls leading to insolvency.
4Citadel's strategic purchase of Ashenbrenner's portfolio.
5Federal Reserve's unexpected decision and market rebound.
6

Original caption

Pro Tip: don’t use leverage #stocks #investing #news

More from @sammystockz

Their other posts in the index, biggest breakout first.

Citadel's massive profit and Ashenbrenner's fund collapse.

Product placement

Citadel: ACTS - a hedge fund that invests money. Removing it would change the video's subject. Ken Griffin: APPEARS - CEO of Citadel, shown in a picture. Removing him would not change the video. Leopold Ashenbrenner: ACTS - owner of Situational Awareness, a hedge fund. Removing him would change the video's subject. Situational Awareness: ACTS - a hedge fund that invests money. Removing it would change the video's subject. Sandisk Corporation (SNDK): ACTS - a company whose stock is traded. Removing it would not change the video's subject, but would remove evidence of the video's topic. Micron Technology, Inc. (MU): ACTS - a company whose stock is traded. Removing it would not change the video's subject, but would remove evidence of the video's topic.

On-screen text

Citadel puts $45 billion hedge fund out of business HEDGE PUT HEDGE TODAY BILLIONS LET RIGHT EXPLAIN LEOPOLD ONLY HEDGE 439% Half 2026 SNDK Sandisk Corporation 1,279.96 +25.99% 1,279.96 At Close NASDAQ - USD Earnings Report Aug 5 Add to Calendar 1D 1W 1M 3M 6M YTD 1Y 2Y 1,288 1,219 MU Micron Technology, Inc. 874.66 +18.36% 909.99 +4.04% At Close NASDAQ - USD 1D 1W 1M 3M 6M YTD 1Y 2Y 885 847 810 773 I UP LEVERAGE BOATLOADS UNTIL FELL MARKET DOWN HIS CRASHING TO 50% USING GETTING MULTIPLE HE BREAKING RIGHT AN BILLIONS DOLLARS Shay Boloor @StockSavvyShay X.com THIS HAS TO BE THE STORY OF 2026 Ken Griffin's Citadel was pushing surprise-rate- hike fears just days before the AI trade collapsed and forced 4x-levered Leopold Ashenbrenner's Situational Awareness to unload its book near the lows. Same day, Leopold's holdings rally 15% to 29% $STE: -60.76% $SNDK: -55.32% $SHAZ: -52.65% $NBIS: -46.33% $SEI: -46.04% $BE: -45.90% $CRWV: -38.90% $IREN: -35.90% $RIOT: -33.38% $SHVE: -30.36% $CORZ: -29.19% $AMD: -26.05% $CLSK: -17.46% SITUATIONAL AWARENESS PERFORMANCE OF LEOPOLD ASCHENBRENNER'S MTD EXPECTED RESERVE SURPRISE NEXT CAUSED NAME HARD INSOLVENT BOUGHT STOCK PENNIES TO SAME Weren't THE CHIP LEOPOLD OWNING SKYROCKETED OVER CITADEL FROM BILLIONS A LEOPOLD FUND AWARENESS OUT

Transcript

Hedge fund owner just put this hedge fund out of business today and made billions doing so. Let me explain. This right here is Leopold Ashenbrenner. He was only 22 years old when he started his hedge fund and it is up 439% in the first half of 2022. I was buying AI chip stocks with up to 4X leverage and making boatloads of money until everything fell apart. When the market took a big downturn, his AI stock portfolio was crashing. Sometimes up to 50%. And because he was using leverage, he was getting margin called by multiple banks until he finally hit a breaking point. This guy right here, the CEO of Citadel, saw an opportunity and billions of dollars. His firm put out a report that they expected the Federal Reserve to do a surprise rate hike at their next meeting. And this caused Leopold's name to crash so hard that he was insolvent. Citadel bought his entire stock portfolio for pennies on the dollar just to bail them out. Then the same day, the Fed actually said they weren't going to hike rates and they were going to keep them the same. The AI chip stocks that Leopold was previously owning skyrocketed. Some of the names he held were up over 20% in the same day that Citadel bought them from him. Citadel made billions of dollars in a single day and Leopold and his fund Situational Awareness essentially went out of business.