Incredible that the founder is engaged to be wed this very weekend to the chief of staff to Anthropic's CEO
Situational Awareness down 67% in July in AI stock rout
51–60 of 190 posts
Re: Situational Awareness down 67% in July in AI stock rout
#52Earlier quoted context omitted.
I really don't like this guy, seriously he's a shark (he's probably right, but what a jerk): "If you know somebody has to liquidate, the best thing you have to do, unfortunately, sadly, Darwinian is to go sell all the positions you have in common, then start shorting everything they have. It accelerates the downfall as quickly as you can." of course then he says 'It's nothing I would ever do...'
That’s truly the playbook when you are on the other side of a levered firm though.
Yeah, probably. Its too bad.
Re: Situational Awareness down 67% in July in AI stock rout
#53Earlier on HN: Martin Shkreli breaks down the collapse of Situational Awareness - https://news.ycombinator.com/item?id=49119380 Edit: added context
Why are you promoting content by Martin Shkreli? You know, the guy who committed securities fraud to rip off desperate patients?
Because hn is primarily about competence, knowledge and tech, which Martin has in spades.
The arguments against him barely hold water in general anyway.
Re: Situational Awareness down 67% in July in AI stock rout
#54Re: Situational Awareness down 67% in July in AI stock rout
#55> 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 argumen…
>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.
Yes he lost a ton of money. He went from being up as much as you said to up only 80% and getting liquidated at that point. If it weren’t for Citadel stepping in to buy his investments who knows how much worse it could have gotten.
The only thing you can argue is realized vs unrealized.
Re: Situational Awareness down 67% in July in AI stock rout
#56[deleted]
Re: Situational Awareness down 67% in July in AI stock rout
#57> 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 argumen…
>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.
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Re: Situational Awareness down 67% in July in AI stock rout
#58[flagged]
Pardon for what? The crime of losing money?
Believe it or not, you are legally bound to act in the interests of shareholders.
Though you cannot be pardoned from civil stuff, and the options to actually prosecute are pretty slim, so I doubt it.
Though, even if this is just tongue-in-cheek, you can literally buy a pardon in America right now with just a little bit a money into the pockets of the Trump family, in case you didn't get the joke (that the US government is literally pro-corruption right now).
Re: Situational Awareness down 67% in July in AI stock rout
#59Re: Situational Awareness down 67% in July in AI stock rout
#60Situational Awareness. Fitting name.