S3 Partners drops the real reason behind Leopold Aschenbrenner's Situational Awareness blowup:

Not some coordinated short attack. Just overleveraged, overcrowded positions getting liquidated.

Classic degen mistake - too much size, too much leverage, everyone in the same trade. Market doesn't need conspiracy when you're already overextended.

Reminder: Leverage is a double-edged sword. Position sizing > conviction.