Saw this on Twitter.
SK Hynix’s 2x leveraged ETF (7709.HK) has grown to nearly $10 billion in assets.
The ETF fell 19% in a single day in Hong Kong. Since it’s a 2x leveraged product, another sharp move lower in SK Hynix could translate into an additional 20–30% drop.
A good reminder that leverage magnifies losses just as quickly as it magnifies gains. When a trade gets crowded, things can unwind very fast.