Novogratz Calls Aschenbrenner's AI Fund Collapse the 'Most Catastrophic Hedge Fund Blowup of Our Careers'

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Galaxy Digital (NASDAQ:GLXY) CEO Mike Novogratz called the implosion of Leopold Aschenbrenner’s Situational Awareness fund “the single greatest, most catastrophic hedge fund blowup of our careers,” while suggesting the forced selling may have marked a bottom for parts of the AI trade.

Speaking Monday on the All Things Markets podcast alongside Anthony Scaramucci, Novogratz blamed a combustible mix of leverage, concentrated positions and absent risk controls.