SITUATION EXPLAINED: Aschenbrenner's letter to investors: full responsibility, no more leverage, staying in public equities. • The letter went out last night, he takes "full responsibility," and says the fund will no longer borrow from banks to magnify its bets • It will keep operating in public equities, not converting into a private fund as people had speculated • He compared the dynamics to a bank run, and partly blamed short sellers targeting the fund's positions • New from the FT: when Intel reported strong earnings and its stock unexpectedly fell, the aggressive seller was reportedly Aschenbrenner, covering losses on Bloom Energy and SanDisk • By Wednesday he had stopped taking investor calls, and was talking to Jane Street, Millennium, and Citadel instead • He reached a deal Wednesday night to sell $3.5 billion of his Anthropic stake to a consortium led by Greenoaks and Sequoia, then backed out Thursday morning • Greenoaks and Sequoia both led Anthropic's $65 billion Series H at a $900 billion valuation, a round Situational Awareness itself invested in • Despite all of it, the fund is still up 80% on the year, and 1,551% since founding less than two years ago • Plenty of big names have blown up worse and recovered: Paul Tudor Jones nearly quit after cotton losses, Bill Ackman wound down his first fund in 2002, Musk was ousted from PayPal before Tesla and SpaceX nearly went bankrupt @theojaffee: "People are getting way too negative about Situational Awareness now. Situational Awareness is fine. Leopold Aschenbrenner is fine. If it literally went to zero, he's still a generational talent and he would do very well regardless."