> don't understand the point of this piece

>> What, then, to make of Situational Awareness’s plunge? ...Mr Aschenbrenner was hardly alone in such bets; over 80% of fund managers responding to Bank of America’s latest monthly survey named “long global semiconductors” as the most crowded trade. The big worry is that this trade’s whiplash-inducing reversal will have set other investment firms teetering, too.

If Citadel hadn't stepped in, Situational Awareness may have had to fire sell tens of billions of dollars of assets. Assets others have leveraged positions in. That, in turn, could have triggered margin calls and a potential credit or even bank crisis.

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jandrese an hour ago | parent [-]

Is this firm big enough to cause a financial crisis on its own? Has the leverage situation gotten so dire? Is this just postponing the inevitable at this point?

	▲	JumpCrisscross an hour ago \| parent [-]
		> Is this firm big enough to cause a financial crisis on its own? I'm still trying to figure out what their gross and net positions were. But taking reported figures at face value, yes, $45bn is more than enough to start a credit crisis, particularly if everyone is crowded into a small set of leveraged positions that begin fire selling.