The Tradr 2X Long SNDK Daily ETF (SNXX) plummeted 6.69% during Wednesday's intraday session. This leveraged ETF, which aims to deliver twice the daily return of SanDisk Corp. (SNDK), experienced a sharp reversal from its earlier positive momentum.

The downturn followed a significant pre-market rally where the ETF had surged approximately 8%. That initial gain was driven by news that Barclays had upgraded its rating on the underlying stock, SanDisk, from "Hold" to "Overweight" and raised its price target to $2,300. Analysts cited SanDisk's strong positioning within the AI-driven memory and storage super cycle as a key reason for the bullish call.

However, the positive sentiment proved unsustainable after the market opened. Reports indicated that SanDisk's stock itself failed to hold its pre-market gains and turned negative, trading down over 2.6%. This reversal in the underlying asset triggered an amplified downward move in the 2X leveraged ETF, leading to the steep intraday decline. The movement highlights the heightened volatility inherent to leveraged products when the direction of the underlying security changes abruptly.