The CSOP SK Hynix Daily (2x) Leveraged Product tumbled 8.63% during intraday trading on Tuesday, reflecting a sharp drop in the underlying Korean-listed shares of SK Hynix. The leveraged nature of the product amplified the loss, which was triggered by a sudden reversal in SK Hynix’s stock price from early gains to a decline of over 4%.

The decline followed a UBS analyst note that cut the target price on SK Hynix from 3.2 million KRW to 3.0 million KRW. The bank cited the company’s faster-than-expected signing of long-term supply agreements—now at 10 contracts with US hyperscale cloud providers and major OEMs—as a factor that could compress short-term average selling price upside, even though the LTA structure is viewed as long-term positive for margins and returns.

Broader market weakness also weighed on the memory sector. The KOSPI index reversed from gains to a decline of over 2%, and Samsung Electronics fell more than 3%, adding to the negative sentiment. This came after a broad sell-off in US-listed memory chip stocks the previous day, where SK Hynix’s US ADR dropped over 4%. Additionally, ongoing deleveraging from Korean regulatory changes that raised cash deposit requirements for single-stock leveraged ETFs continued to pressure related products.