It’s the same story every bull market. The hot fund on the block with no risk manage gets liquidated. 4x leverage long is insanity. And this guy was meant to be smart? Sadly most investors make the same mistake. They choose either: 1. The high return, leverage long only “Golden Child” (Leopold, 3AC, FTX), or 2. The “Low risk” market neutral (dozens in crypto 10/10, LTCM, etc) Both get body bagged. I’ve lost count of the fund blowups from the last 5 years. They die the same way, taken to the butchers from leverage liquidation, driven by arrogance and “black swan” events which are actually just normal market moves that occur every 1-2 years. Sadly the incentive structure for most is such that they still walk away set for life. You have to ask a fund: - what are the leverage constraints - how they model risk and volatility - how they survived major events like FTX There is _no_ such this as market neutral it’s just transferred risk. There is nothing wrong with volatility, in fact more can be better if risk-adjusted returns go up. It just must be understood how it’s done safely.