Direxion Daily MU Bull 2X Shares (MUU) experienced a sharp pre-market plummet of 15.07% on Monday, reflecting intense selling pressure on the leveraged exchange-traded fund that tracks Micron Technology.

The severe decline was driven by deep market concerns over potential mid-to-long-term overcapacity in the memory chip sector. Major industry players Samsung, SK Hynix, and Micron Technology have collectively announced aggressive, multi-hundred-billion-dollar capacity expansion plans, triggering fears of a future supply glut. Compounding these worries, SK Hynix's recent massive $26.5 billion ADR listing on Nasdaq was seen diverting capital from existing memory stocks, while noted short seller Michael Burry's open short position on Micron intensified bearish sentiment. As a 2x leveraged ETF, MUU's structure amplified the downward move of its underlying asset.

The sell-off was broad-based, with the memory chip sector facing significant pressure globally. SK Hynix's U.S.-listed ADRs plunged in pre-market trading following a steep drop in its home market, and other chip stocks weakened in tandem. Analysts have warned that the upward momentum for semiconductor stocks is fading, with capital potentially rotating out of the sector.