The Tradr 2X Long SNDK Daily ETF (SNXX) experienced a sharp decline of 8.09% during the night session, reflecting amplified losses in its underlying asset.

The plunge was driven by a broad sell-off across the semiconductor sector, which particularly weighed on memory stocks including Sandisk, the ETF's tracking target. As a 2x leveraged instrument, SNXX magnifies the daily price movements of Sandisk, leading to an intensified drop.

Analysts point to elevated valuation risks within the memory sector following an extraordinary rally earlier in the year, fueled by explosive AI data center demand and a severe NAND supply-demand imbalance. Concerns over a potential deceleration in AI-driven demand or a cyclical correction in NAND pricing contributed to the retracement, affecting leveraged ETFs like SNXX.