The downfall of a 20-something 'AI prodigy' who shook Wall Street… the inside story of the $3 trillion market crash

Leopold Aschenbrenner’s AI hedge fund was hit by a sharp selloff and margin calls after making heavily leveraged bets on semiconductor and AI stocks.

Fears of forced selling helped wipe out about $3 trillion in global market value across AI- and chip-related shares.

Citadel stepped in to buy the fund’s listed equity portfolio at a discount, easing the immediate market pressure.

The episode highlights the risks of AI euphoria, high rates, and excessive leverage in today’s markets.