alt Hacker News> Aschenbrenner party blamed short sellers who targeted the firm’s positions for exacerbating the fund’s losses, the letter said. The letter compared Situational’s experience to a bank run.
4 years ago, it was SBF blaming Changpeng Zhao for shorting FTT and triggering a run on FTX.
Now another EA has followed the path of making a lot of money relatively quickly and losing it just as fast, using the exact same arguments for why it happened.
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>Now another EA has followed the path of making a lot of money relatively quickly and losing it just as fast
let's be clear here - he didn't actually "lose" a ton of money. he was up 439% net in the first half of 2026.
his issue was getting margin called due to being short on software (which went up) and long on AI infra (which went down) - getting margin called != losing money.
>Now another EA has followed the path of making a lot of money relatively quickly and losing it just as fast, using the exact same arguments for why it happened.
I would be very interested to know what he did with the management and performance fees (and how much they were) he gathered over the last 3 years. Just the perf fees from 2025 are probably enough to set him up for life. If he reinvested not so great.
Even Wirecard – a fraudulent German bank missing some billions of euros and run by a Russian spy – always blamed bad press.
Denials mean nothing.
Sounds like someone took huge risks, incurred huge losses, and thought they were entitled to always win. It honestly feels good seeing these folks get knocked down a peg.
He had to liquidate everything that’s liquid and is left, seemingly, with some iffy-looking things that have paper returns but are broadly illiquid. Thats a disaster for a fund no matter how you slice it.