Situational Awareness, a leveraged hedge fund run by Leopold Aschenbrenner, lost approximately $35 billion in late July after margin calls from prime brokers Bank of America, Goldman Sachs, and JPMorgan Chase forced a distressed sale of its holdings to Ken Griffin's Citadel. The fund had used up to 400% leverage and held large short positions in software companies like Adobe, alongside bullish bets on AI infrastructure stocks. The unwinding of these short positions became a tailwind for enterprise software stocks such as Palantir, Veeva Systems, Salesforce, and ServiceNow, which were among the S&P 500's top performers in August.