Well spotted GWR... I work for a hedgie and that is exactly what happened. Some of the funds got caught with their pants down as they (like us) were thinking of reality and fundamentals. When it all went out the window all hell broke loose.

Some of the funds have actually stopped allowing redemptions (Ore Hill for example) as the investors freaked out and tried to pull out, which of course would start a sell off stampede which would destroy the fund. Some are now negotiating lower fees as an enticement to stay in.

August hasn't been that bad for the more flexible funds who can change strategy on a dime, but the long term long trend for commodities is definitely anticipated to be up, up, up... especially when the world of investment comes to it's senses and the USD starts a re-crash. A number of the funds are simply waiting for any sign of revival so they won't be caught out again on the reversal.