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The most legendary fund in the AI bull market ultimately collapsed due to leverage. Leopold, 23 years old, a former OpenAI researcher and author of "Situational Awareness," founded an AI-themed fund with a firm bet on AGI. Using high leverage, he went long on AI infrastructure and shorted traditional software, achieving over 400% returns in the first half of the year. The fund's size rapidly expanded to about $45 billion, becoming Wall Street's most watched rising star. However, in July, the AI sector collectively corrected. Heavy holdings like Nebius, SanDisk, Micron, CoreWeave, and SK Hynix all plummeted, while the short positions unexpectedly rebounded, putting the fund under dual pressure. Facing margin calls, its approximately $16 billion public stock position was ultimately sold off entirely to Citadel, clearing all public holdings. Notably, the fund still retains some unlisted Anthropic shares, so it is not completely ended, but the high-leverage strategy suffered a severe blow. More dramatically, shortly after its positions were forcibly liquidated, multiple AI stocks rebounded, with SK Hynix surging over 17% in a single day. The market warmed up again, but it was no longer related to him. This experience once again reminds the market: investing tests not only judgment but also position management. Being right about the direction does not guarantee profits; if leverage is too high and risk is out of control, you often won't live to see the value realized. Those who truly survive cycles are never the most aggressive, but those who can stay at the table.