Was That The Bottom?

Leopold liquidated. 350,000+ Koreans wiped out. Is the AI washout finally over?

The last few weeks watching AI infrastructure felt like a slow-motion train wreck. First, there was huge selling, then margin calls, followed by forced liquidations. Leopold Aschenbrenner’s Situational Awareness fund got crushed. By June, it was up 439%, hitting almost $45 billion. Then the fund had to dump most of its publicly traded stock onto the market. Citadel ended up buying a big chunk of it.

Also, over 350,000 Korean retail investors got wiped out on their leveraged AI and semiconductor bets. This is insane! The total losses on those leveraged bets ran into the tens of billions. It was a brutal, public mess.

Then, things changed. A lot of people who were hyping the AI supercycle just three months ago are now doubting it. You hear things like “Capex peak,” “ROI problems,” and “the trade is overcrowded”

And yesterday topped it off.

AI infrastructure stocks that got hammered started to climb. The forced selling finally let up. The QQQ closed up over 3%. The big question this morning is pretty simple: Was that just the bottom?

We’ll get into that.

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For the rest of this piece, I’ll cover:

• What actually went down over the last 48 hours.

• If I think the bottom is really in.

• How this dip stacks up against past corrections.

• The specific QQQ levels I want to see to signal an uptrend.

• Which stocks are showing the clearest future signals.

• What I’m focused on after this market pullback.

This is a moment where being ready is key.