The latest cautionary tale involves a fund tied to SK Hynix, a South Korean chipmaker. Despite the stock rising 16%, the leveraged ETF plummeted 27%, underscoring the peril of inverse bets. This follows SpaceX-inspired SPCF, which promises double the company’s daily gains.

With over 500 leveraged ETFs now trading—more than the S&P 500’s listed firms—the market faces a liquidity crisis if trends reverse. Investors must treat these as speculative tools, not stable holdings.