SK Hynix surged 13%, while a 2x long ETF plummeted 40% in a "reverse dive."

According to Odaily Odaily, the leveraged ETF "KIM ACE SK Hynix Individual Stock Leveraged ETF," which tracks chip giant SK Hynix, plunged as much as 40% shortly after the market opened on Tuesday (the latest decline has narrowed to about 30%), while SK Hynix's stock price surged by more than 13% during the same period. Previously, the ETF had already experienced unusual volatility on Monday, surging 50% at the close while its underlying stock, SK Hynix, fell nearly 8%. This two-day "reverse dive" has intensified market scrutiny of the ETF's manager, Korea Investment Management Co. The company stated that the initial unusual activity in the $37 million fund on Monday stemmed from insufficient liquidity. Jung In Yun, CEO of Fibonacci Asset Management, stated, "While such price imbalances are rare, they are not unprecedented. ETFs typically rely on market makers to ensure that prices remain aligned with the underlying asset. However, these safeguards can weaken during Monday's closing auction, especially in niche products with limited trading volume." (Aastocks)