The $650M Volmageddon Collapse: How LJM's Leveraged Short Vol Strategy Imploded in 48 Hours

How a fund named "Preservation" delivered 80% destruction in two trading sessions

Sep 07, 2025

∙ Paid

February 6, 2018

LJM Partners sent a terse email to investors: "LJM strategies have suffered significant losses." By then, their $812 million "Preservation and Growth" Fund had already collapsed 80% in 48 hours—from $9.67 to $1.94 per share. Investors lost approximately $650 million.

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