Leopold Aschenbrenner, hailed as the 'AI Prophet,' a teenage investing prodigy from the United States, narrowly avoided a liquidity crisis last week. He had aggressively invested in AI-related energy and memory sector stocks using 4x leverage. However, starting mid-July, these holdings sharply declined, triggering margin calls from banks and nearly depleting his capital.

Fortunately, Citadel stepped in last Thursday, acquiring large stakes at discounted prices, preventing a cascading liquidation crisis. Nonetheless, Aschenbrenner's fund still suffered a staggering 67% loss, with assets plummeting from $45 billion to approximately $10 billion.

In other words, over $30 billion (about 1 trillion JPY) in fund value evaporated within just two weeks. Witness one of Wall Street’s most shocking stories of the year…

Full report available exclusively for VVIP members.

Want to discuss global economic trends and investment markets? Join the 'Hot Talk! Wall Street' LINE community to engage in deep conversations with industry elites (Password: WSJWSJ)

FACT BOX

  • Source: PR Times
  • Category: News