A.I. investment fund forced to unwind all public stock holdings

If you see crypto get wiped out Oct-Feb, metals get wiped out Feb-May and signs of equities cooling starting in early June, and you STILL don’t tap the brakes, you don’t know what game you’re playing and have no business running a fund.

Nothing screams fundamentals in a sector like a hedge fund being forced to mass liquidate their 4x levered AI Holdings

He was up to 45 BILLION, a 180x return, and didn't sell anything until he was forced to sell....to Ken Griffin....

Citadel played them like a fiddle on Tuesday after issuing that Fed raise prediction

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This is a preposterous "theory".

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I don't understand your quotes. It's what happened.

Are you saying it's not a theory? You'd be right.

Thi sis a dumb tweet, they are up today because SA is not pounding the stock because of liquidity in his book.

also a little clarification. Citadel only bought the portion of the public book financed by leverage

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Are you saying it's not a theory? You'd be right.

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You're right, it's not a theory. It's a preposterous conspiracy theory thrown around by dumbasses on Twitter that couldn't make money without a bull market inflated by money expansion and their sheer mass producing a positive feedback loop for their picks, and even then, many of them still end up as bag holders chanting "diamond hands." Why are you guys eating up this wallstreetbets level of stupidity?

That prediction by Flight at Citadel (ignoring that he wasn't even alone) had, at best, marginal effects on the stock market. Hell, SPX went up and VIX declined the very next day while in a month+ long downtrend. Nasdaq went down, but if we put on our logical hats instead of listening to whatever on X tickles our monkey brains, riskier assets going down in a month+ long downtrend is not a surprise but expected. Now we're up today because the actual Fed decision caused a large enough selloff that, at least temporarily, exhausted that side of the market; it's too lengthy to explain why and how (so sorry for the "just trust me, bro"), but after yesterday's close, there was little logic to sell or continue short positions, at least for the immediate term. And as for the individual stocks, as whodatigahbait said, you don't have that goober in a position beyond his merits desperately trying to close a 4x long position and creating a negative feedback loop in the process.

As for Citadel's purchase, they are the biggest market maker in the US, if not the world. They are the best option to offload the leveraged part of that 4x exposure because they have the minds, resources, and scale to take that on. Who else would you suggest do it??? No seriously, tell me. Because iirc, Jane Street does about half of Citadel's daily volume, but much of theirs is in ETFs. It's hard to find any public and current numbers for any other market makers, but it's quite possible you'd have to make multiple separate deals if you went that route, which costs valuable time for a firm that didn't have the luxury of it. Non-market makers typically don't want to take that on unless they have to. So who or what is the viable alternative to Citadel, who can handle the scale of both selling it and hedging leftover daily inventory?