CSOP SK Hynix Daily (2x) Leveraged Product plummeted 5.11% during intraday trading on Friday, extending recent losses for the leveraged exchange-traded fund.

The decline comes as the ETF has ballooned to $13 billion in assets, making it the world's largest single-stock leveraged ETF. As trading has become extremely crowded, banks have curtailed services due to risk exposure limits, causing hedging costs to surge from approximately 3% in March to over 10%, which directly erodes fund performance.

Analysts warn that one-sided positioning has created a feedback mechanism where any reversal in momentum triggers mechanical rebalancing and rapid forced selling. Additionally, regulators have publicly expressed concern over leveraged ETFs amplifying market volatility, with Korea's Financial Supervisory Service chief stating he regrets approving such products and disclosing that authorities are developing investor protection measures.