How an 8-person fund called "Situational Awareness" blew up $24B, sold its whole portfolio, and triggered a market drop

Killed from both sides: long the AI buildout (SK Hynix, Nebius, SanDisk, Micron, CoreWeave - all down 35%+), short software names like Adobe that ripped higher. 

**The part that should scare you:** forced sellers don’t care about your cost basis. They were forced to sell off their entire public portfolio in one shot. Wednesday’s 1,100-point Dow drop was probably partly this book getting liquidated into no bid. Notice how chips bounced today the moment it cleared? 

His letter says the fund was “not immune” but calls this the best opportunity since early 2025 - and actually invites investors to add capital Aug. 1. a bold move!