SK Hynix Stock Surges 13% as Leveraged ETF Plummets 40% on Tuesday

According to ChainCatcher, the KIM ACE SK Hynix Leveraged ETF collapsed approximately 40% shortly after Tuesday's opening—narrowing to around 30% by latest update—while SK Hynix stock surged over 13% in the same period. The $37 million fund has experienced sharp reversals over two consecutive days; on Monday, it skyrocketed 50% while its underlying asset SK Hynix fell nearly 8%.

Korea Investment Management Co. attributed Monday's anomaly to insufficient liquidity. Fibonacci Asset Management CEO Jung In Yun noted that while such price misalignments are rare, they are not unprecedented in leveraged ETF markets, particularly in low-volume niche products where market-making mechanisms weaken during closing auctions.