Bankless · Friday, July 31, 2026
The prominent "poster child" of the AI trade has been forced to sell their entire public book due to excessive leverage, signaling a potential unwinding of the AI bubble. This event, characterized as a significant learning lesson about market cycles and leverage, has led to a significant portion of their assets being sold, with Citadel reportedly buying the public book.
“The poster child of the AI trade is now a forced seller because he took on a little too much leverage.”
“AI investor Leopold Ashenbrenner forced to unwind all public stock positions after steep losses. We know he likes a little bit of margin. So he does short some assets. He does long some assets as well.”
“The big news coming out of this is that Citadel, Ken Griffin, bought the public book. And so that's a big deal. So classic story of this guy...”