The turmoil underscores regulators’ concerns about leveraged ETFs’ role in amplifying volatility. With the Kospi hitting a 12-month low Tuesday, fears of a broader market correction loom. Bloomberg Intelligence’s Rebecca Sin warned: ‘Yesterday wasn’t a redemption story,’ highlighting how these funds magnify moves in already oversized stocks.

As AI-driven demand reshapes semiconductor valuations, the interplay between ETF mechanics and market structure remains a flashpoint. Investors face a dilemma: navigate the volatility or exit before mechanical selling fuels further declines.