Situational Awareness, a hedge fund founded by former OpenAI employee Leopold Aschenbrenner, is facing a liquidity crisis due to the recent massive sell-off in AI stocks after posting a net return of 439% in the first half of this year, and has sought new financing from investors and lenders. The fund, which manages $20 billion in assets, had previously heavily invested in AI-related stocks through highly leveraged strategies; however, during the market downturn, this strategy also amplified losses exponentially. Fund founder Aschenbrenner has told investors that the current market correction presents a rare opportunity to increase positions and is preparing to open a new round of subscriptions on August 1.