---
title: This is how leverage turns a pullback into a wipeout.
description: "The 2x leveraged SK Hynix ETF listed in Hong Kong has plunged 64% from its June peak after SK Hynix shares fell more than 35%, including a record 15% one-day drop on Monday.\n\nMany South Korean retail investors rushed into these leveraged ETFs after their launch, expecting to amplify AI-driven gains. Instead, extreme volatility and daily rebalancing accelerated losses, with reports of forced liquidations already emerging.\n\nThe lesson is simple: leverage doesn't just amplify returns—it magnifies mistakes. In volatile markets, it can destroy capital far faster than most investors expect.\n\nSource: Global Markets Investor"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [This is how leverage turns a pullback into a wipeout.](https://blog.syzgroup.com/syz-the-moment/this-is-how-leverage-turns-a-pullback-into-a-wipeout)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jul 13, 2026, 3:07:51 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/this-is-how-leverage-turns-a-pullback-into-a-wipeout)

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