Hedge fund Situational Awareness, run by Leopold Aschenbrenner, collapsed due to excessive leverage, prompting market concern. Citadel, led by Ken Griffin, acquired a significant portion of Situational Awareness's positions at a steep discount after the fund's downturn. Initially, there was uncertainty about whether Citadel would hold these volatile AI-related stocks. However, Ken Griffin recently communicated to his investors that Citadel has successfully divested over 80% of the acquired portfolio. This strategic sale involved nearly 100 block trades totaling over $4 billion, including some of the year's largest intraday block trades. The article suggests these block trades were necessary due to the illiquidity of the stocks Aschenbrenner held. Citadel's proactive approach during this market dislocation resulted in billions in profit from the liquidation of Aschenbrenner's momentum-favored stocks. Griffin highlighted Citadel's capability to execute such a large-scale rescue deal rapidly. The acquisition and subsequent rapid sale of these positions significantly contributed to Citadel's Wellington fund's strong performance in July and year-to-date. Griffin's swift action effectively stabilized fears of further forced selling, ironically creating the market conditions for Citadel to profit from unwinding the acquired positions.