The hedge fund bought about $16 billion of the AI-focused fund’s public equities at a discount of more than 10%, after late-July losses and collateral demands triggered rapid sales across AI and crypto-linked stocks.
Citadel bought most of Situational Awareness LP’s public equity portfolio, reportedly about $16 billion, before Thursday’s open at a discount of more than 10% after margin calls forced the AI-focused fund into a rapid late-July liquidation. Reports said the sale helped Situational Awareness avoid a formal default. The fund had earlier reached roughly $45 billion in assets under management in 2026, but losses on both long and short positions left it scrambling for cash. The pressure followed a mid-July selloff in AI and semiconductor stocks that hit long positions including SK Hynix and Micron, while short software bets also moved against the portfolio. Lenders named in reports included Goldman Sachs and Morgan Stanley, while a newer report also cited Bank of America and JPMorgan as counterparties demanding additional collateral. The portfolio included crypto-adjacent names such as Riot Platforms, CleanSpark, IREN, Core Scientific and Bitdeer. After news of the transaction, IREN, CORZ, CLSK, RIOT and BTDR were each reported up more than 20%. Situational Awareness later told investors it lost about 67% in July but said it was still up about 80% for the year. The fund retained private holdings including Anthropic, leaving it more concentrated in illiquid private-market exposure after shedding most of its public book.