**Leopold Aschenbrenner’s AI-focused hedge fund Situational Awareness LP faced acute pressure in late July 2026 when steep losses across leveraged semiconductor and infrastructure positions triggered simultaneous margin calls from its prime brokers.** The fund executed a block sale of its entire public-equity book to Citadel, slashing assets under management from roughly $20–45 billion to around $10 billion while retaining its multibillion-dollar private stake in Anthropic and other holdings. Aschenbrenner subsequently committed $400 million more to chip startup Source Foundry, switched to Clear Street as prime broker, and signaled intent to operate as a private vehicle without external leverage. These steps have anchored low market-implied odds of a full wind-down announcement by year-end, as the firm continues selective private investments and investor outreach amid an uncertain AI capital environment. Key near-term catalysts include any new capital raises, performance letters, or regulatory filings that could clarify remaining outside investor capital.