Amaranth Advisors was a multi-strategy hedge fund that collapsed in 2006 after losing over $5 billion on natural gas futures trades. The fund was founded by Nicholas Maounis and grew to $9 billion in assets before trader Brian Hunter's large bets on natural gas spreads soured due to hurricane season and changes in market behavior. As losses mounted, Amaranth initiated a critical liquidation cycle, ultimately locking in over $5 billion in losses before shutting down. The collapse was one of the largest known hedge fund failures.