When was a hedge fund last bailed out with public funds? They typically don't. Like them or not, they have historically been left to fail, or be bought out by their competition.
Probably the quietest "bailout" comes from Long Term Capital Management in 1998 was basically bailed out by banks at the urging of the feds[2].
It seems that most funds are left to die [3] (or, more alarmingly, dissolved at the hands at the SEC for insider trading (I'm sensing a trend...))
Perhaps, as "an exercise left to the user", I'll look more deeply at this matter; as it's quite interesting.
[1] https://www.nytimes.com/2020/07/23/business/economy/hedge-fu... [2] https://en.wikipedia.org/wiki/Long-Term_Capital_Management [3] https://www.investopedia.com/articles/investing/101515/3-big...