Situational Awareness, the $20 billion hedge fund founded by former OpenAI employee Leopold, has sought to raise a new round of funding from investors after suffering significant losses during the recent AI stock crash. According to several insiders, Situational Awareness had used leverage to amplify its returns—a popular hedge fund strategy—but this also magnifies losses during market downturns. Looks like Leopold has fallen from grace. At the end of June, there were reports of over 400% returns, and now there are major losses? Just how much leverage was used here? Another 'stock god' has fallen. Honestly, it’s not a bad thing. Let’s knock all the gods off their pedestals, and the market can return to its original state. No destruction, no creation.