Nothing about any of that is sketchy. It’s in their mutual interest to avoid a fire sale.

It’s sketchy to invest in a fund they probably knew full well had terrible risk practices and was likely going under on the first drawdown.

When Leopold went to pitch NY investors they all passed and thought he was full of it. He could only convince California tech guys. Savvy finance guys saw SA for what it was (leveraged beta trade). Jane street are finance guys, not California tech bros.