The hedge fund Situational Awareness collapsed not due to a short attack; institutions say that excessive concentration of positions and high leverage are the main causes.

According to Zhitong Finance APP, after a significant correction in AI concept stocks, the hedge fund Situational Awareness has been forced to sell a large amount of stock at a discount due to massive losses. However, short data analysis firm S3 Partners believes this turmoil is not due to a concentrated attack by short sellers, but rather the result of the fund's own overly concentrated positions, overly crowded trading, and high leverage operations.