Hedge fund blowups: Walleye, Engineers Gate, Situational Awareness
Multiple funds are reportedly liquidating or shutting units amid the AI-trade unwind, with Walleye's L/S unit gone and Aschenbrenner's fund reportedly blown up. Leverage across pods is raising contagion concerns.
What we know
Walleye returned capital and fired its head of equities; an account on X cites ~$17B levered ~5x. Financelot says Walleye and Engineers Gate liquidated everything. A list of troubled funds includes Axebrook, Lone Pine, Millennium and Verition pods, and Samlyn. Situational Awareness reportedly blew up with MU, CORZ and SNDK losses of 39-61%. The Goldman desk says phones are exploding with asks for color.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.