Situational Awareness Crisis Reflection: 1confirmation Founder Says "Smart Money" Is Repeating the Same Mistakes

1confirmation founder Nick Tomaino posted comments on the AI investment fund Situational Awareness crisis incident, stating that recent discussions surrounding the fund reflect a long-standing problem in the investment circle: many so-called "elites" and "smart money" lack basic risk judgment capabilities. Tomaino stated that he does not know all the details of this incident and does not wish to comment on the specific liquidation process, but he believes a deeper problem is that many investors are driven by wealth and attention, gradually ignoring facts, risks, and judgment of others. Citing the FTX collapse as an example, he noted that many people could detect abnormalities after brief contact with the founder, but a large amount of "smart money" chose to continue investing and endorse it due to chasing returns and market narratives. Tomaino pointed out that a similar phenomenon occurred with the founders of Situational Awareness and the investment circle supporting the fund: the same type of investors chased grand narratives, provided funding, and drove promotion, but ultimately the fund fell into distress due to high-risk bets and market reversals. Industry participants should learn lessons from this and avoid repeating the cycle of "chasing hotspots—ignoring risks—collectively stepping on mines."