Margin calls forced Leopold Aschenbrenner's hedge fund Situational Awareness to liquidate positions in CoreWeave and Nebius Group near market lows, with both stocks subsequently surging roughly 50% in the immediate rebound. CoreWeave collapsed 56% from peak to trough before bouncing nearly 50% off its lows, while Nebius gained 52% after a near-50% haircut before pulling back around 17%. The forced selling occurred during what was otherwise a routine AI sector correction, highlighting the risks of high leverage in hyper-growth investing. Aschenbrenner has since bet $400 million on semiconductor startup Source Foundry, as Taiwan Semiconductor faces more demand than it can handle.
