Leopold Aschenbrenner's Fund Liquidated: The Inevitable Croc Attack
The Sound of Inevitability
Kris Abdelmessih, a veteran derivatives trader, uses a vivid market microstructure story to explain why Leopold Aschenbrenner's leveraged, concentrated AI fund was doomed. Despite being up 80% net of liquidation, SALP's public portfolio was sold to Citadel after a 2/3 drawdown. Abdelmessih argues that leverage plus concentration in thin liquidity attracts 'crocs'—dealers who feast on forced sellers—making the blowup inevitable.
The moment Leo chose 4x leverage on a concentrated book, he splashed loudly into the river. From there, crocs just do what they do.
- thatmf
Derivatives trading is a net negative upon society and this florid prose is just one more ghastly effluvium from the sarcophagus
- popalchemist
Gag inducing on multiple levels. Not only the self-indulgent and incoherent writing, but the very notion that an author or authors would call their undertaking Panoptica. A panopticon is the ultimate and most inhumane prison. Idiots.
- Terr_
I hope that this is satire of LLMs, or satire of day-traders on drugs, but I fear it is neither.