Black Mesa fund - Quantitative fund

MarketWatch broke the following story regarding "at least one very large fund" (or investment bank?) that has seen significant losses in recent weeks here:

Black Mesa Capital, a hedge fund firm that uses computer models to track down arbitrage opportunities, has told investors that at least one very large hedge fund or investment bank is liquidating "massive" trading portfolios, according to a letter the Santa Fe, NM-based firm sent to investors on Wednesday. That's causing disruptions and triggering losses among other so-called market-neutral hedge funds, Black Mesa said in its letter, a copy of which was obtained by MarketWatch on Thursday. "Clearly, something is amiss in the markets that few in our strategy, if anyone, have experienced before," Black Mesa wrote. The firm's hedge fund is down roughly 7.5% in August, through Aug. 7 and could be down as much as 10% since then, Black Mesa noted.

Update, Aug 14: A manager at the fund has written in to point out that the fund is still up for the year and to assure that it is in no peril.