In the face of a significant drop, some choose to "fire all their bullets." Recently, Dan Bin, chairman of Dongfang Hongwan, posted on Xueqiu, stating, “You must dare to buy during a big drop,” and expressed that he has already “fired off the remaining bullets” to buy into SK Hynix-related assets, while also reminding that leverage tools can amplify profits but also exponentially increase risks. Almost on the same timeline, a 2x long ETF based on SK Hynix in the South Korean market plummeted about 25.72% in a single trading day (according to a single public source), coupled with the KOSPI triggering a circuit breaker for two consecutive days, pushing these products, which leverage and bet on AI core stocks, into the spotlight, and even leading Korean Finance Minister Choo Kyung-ho to apologize to lawmakers, admitting that there was a lack of adequate prudence prior to the launch of single-stock leveraged ETFs. The shadow of volatility did not stop at traditional markets: on July 28 at 07:01, on Trade.xyz supporting SK Hynix tokenized contract trading, the price of the related token dropped from $1127.9 to $917.25 in an instant, then quickly recovered, forming a typical extreme “spike” market. Thus, around SK Hynix, a symbolic company of the AI market, the violent tremors of traditional Korean stock leveraged ETFs intertwined with the spike of on-chain token contracts, outlining a risk transmission chain from spot to leveraged products, and then to tokenized derivatives. This article will follow this chain to question where the residual risks and regulatory reflections point after the leverage frenzy.
Dan Bin buys the dip on SK Hynix: bold buying or reckless gamble
On this risk chain extending from Korean spot markets to on-chain tokenized contracts, Dan Bin chooses to provide his answer—“You must dare to buy during a big drop.” At a time when SK Hynix is undergoing drastic adjustments, which he regards as the "phase-defining company" of this round of AI market, he openly states that he has "fired off the remaining bullets" and increased his positions by buying SK Hynix-related assets, while also reminding that leverage tools can both amplify profits and risks, allowing for a clearer view of the market's brutal volatility when the tide goes out. Logically, he is betting on a classic narrative of “good company + phase miscalculation”: the underlying asset remains central to the AI hardware chain, while upstream sentiment and valuations are under pressure, which creates a "dare to buy" time window in his eyes, but the short-term direction of the asset remains uncertain. He emphasizes risks to rationally justify this heavy investment action.
The real tension lies in the demonstration effect: ordinary investors do not know his specific holdings and position ratios; they can only hear the resolute tone of "firing all bullets" and the rational reminder of "leveraged risk amplification" juxtaposed together. For those already suffering from the drop in the 2x long ETF and the spike in on-chain contracts, such a statement can easily be understood as “forward-looking individuals are increasing their positions against the trend,” but may not realize the gaps in funding sizes, risk tolerance, and risk control tools between professional institutions. When a star investor packages the appeal of bottom-fishing with risk warnings, market sentiment often only remembers the former, thus evolving “daring to buy” into a more aggressive leveraged impulse in the next round of volatility, and this path from confidence to recklessness is often pieced together only after the tremor.
2x SK Hynix ETF plummets 25%, crushing South Korean retail investors
When the sentiment shifts from “dare to buy” to “dare to go all in,” the 2x long SK Hynix ETF presented South Korean retail investors with a brutally harsh reality check. Reports indicate that this product experienced a single-day drop of approximately 25.72%, meaning that many individual investors who initially wanted to "use a bit of leverage to amplify profits" absorbed nearly a quarter of their net worth in losses within a single trading day. For retail investors who regarded it as a shortcut to betting on core AI targets, this was not just a severe reduction in numerical value on paper but a collective illusion being shattered where they mistakenly considered this tool as a “risk-free accelerator.”
Ironically, all of this did not happen under calm market conditions. Recently, the KOSPI index in South Korea triggered circuit breakers for two consecutive days, causing overall volatility to suddenly escalate, with single-stock leveraged ETFs becoming amplifiers of the fluctuation at this time. Faced with scrutiny, South Korean Finance Minister Choo Kyung-ho apologized to lawmakers on Wednesday local time, admitting that launching single-stock leveraged ETFs without adequate prudential consideration was problematic, and noted that the government is researching measures to maintain market stability, putting such products in the spotlight for discussion. Surrounding this 2x ETF, individual participants seeking amplified returns and actively bearing high volatility are pushed into the public opinion spotlight, and regulatory bodies are forced to confront a question: When volatility hits, does the product's “multiple” serve the investors, or does it hasten their push toward the limits of losses, is there still a justification for such single-stock leveraged tools to continue existing?
Korean stock spikes transmit on-chain: Trade.xyz contract incident
The offline debate surrounding leveraged ETFs had not settled when on-chain, an extreme candle provided another form of risk. On July 28 at 07:01, according to Trade.xyz announcements and page records, the pegged price of the tokenized contract linked to SK Hynix on the platform was instantaneously plunged from $1127.9 to $917.25, only to quickly return to the normal range, graphically resembling a typical “spike.” For users who rely on the pegged price for margin calculations, risk control triggers, and order matching, such a rapid plunge is enough to alter the fate of their positions, directly leading to the subsequent official statement that "affected users will receive full compensation."
Trade.xyz explained this anomaly as “price transmission triggered by real transactions”: a real transaction that occurred in the main pre-market in South Korea was captured and pushed by multiple independent market data providers, thereby becoming one of the data sources on which the platform's pegged price relies. This means that theoretically, the “multi-source pricing” intended to spread the risk of a single source, faced with the same discrete anomaly, became highly homogeneous, lacking filtering and discount mechanisms for pre-market liquidity and extreme transaction prices. The platform's decision to compensate affected users in full repaired user losses in the short term but effectively acknowledged with real money that once the cross-market pricing linkage transports the distant “single misalignment” directly to on-chain, the current risk control design struggles to preemptively block such systemic spike risks, and as long as contracts continue to connect directly with multi-source external markets, these unexpected events triggered by extreme transactions will not automatically disappear.
The double-edged cost of leveraged ETFs and on-chain contracts
The same SK Hynix is packaged into a 2x long ETF in the traditional market, while on-chain it is sliced into tokenized contracts; these two types of leveraged tools are logically similar: both anchor to the underlying price, amplifying the fluctuations of long and short directions into more severe gains and losses. The difference is that single-stock leveraged ETFs are directly correlated with the continuously traded stock prices during the trading day, and the recent roughly 25.72% decline of the 2x long SK Hynix ETF primarily comes from unilateral adjustments of the underlying itself; while on platforms like Trade.xyz, relying on oracles to access multi-source market data, including the pre-market in South Korea, translates “external transactions” into on-chain pegged prices. The extreme pre-market transaction on July 28 at 07:01, being captured by multiple data sources simultaneously, instantaneously dragged SK Hynix token’s pegged price from $1127.9 to $917.25, and the risk explosion path is more dependent on each link of the price sources and technical pathways.
From the perspectives of individual investors, regulators, and platforms, the roles and responsibilities on this risk chain also become clear. While Dan Bin vocally asserted, “You must dare to buy during a big drop,” claiming to have “fired off the remaining bullets” to increase positions in SK Hynix-related assets, he simultaneously reminded that leverage tools could exponentially amplify risks. He bears a portion of the responsibility for actively choosing sides in the AI narrative and being accountable for his positions. Meanwhile, after the launch of the single-stock leveraged ETF, Korean Finance Minister Choo Kyung-ho apologized to lawmakers, acknowledging the initial lack of sufficient prudence and including such products in the discussions for maintaining market stability in an attempt to cover for institutional design oversights. Trade.xyz chose to fully compensate affected users after the spike incident, facing the direct costs of technological and pricing mechanism failures. SK Hynix, as the leader in the Korean stock market for AI chips, and also the target of several platforms’ tokenized contracts, reveals that when high yield pursuit pushes funds and sentiment into both leveraged ETFs and on-chain contracts simultaneously, every additional layer of “AI + leverage” packaging adds another layer of systemic risk across markets and technical pathways, and no party can assume they will always be the safe bystander in the narrative.
After the storm: how investors and regulators can learn
From the peak decline of SK Hynix's stock price to the 2x long ETF losing approximately 25.72% in a single day, the KOSPI triggering multiple circuit breakers, and the spike of SK Hynix token contracts on Trade.xyz from “$1127.9 instantly dropping to $917.25,” this chain almost transmitted risk from Korean stock spot, single-stock leveraged ETFs, all the way through to tokenized contracts and every layer of on-chain pricing mechanisms. For ordinary investors, the real lesson to be learned is not whether “can one bottom-fish,” but rather whether one can clearly understand each point of contact with leverage: How high the leverage multiple is, whether the tracked asset is a single stock or a basket of assets; how product terms handle forced liquidation and risk control during circuit breakers, pre-market volatility, and extreme price gaps; what external data sources and warning mechanisms the platform relies on, and how errors will be amplified when a “real transaction” is simultaneously captured by multiple data vendors. Dan Bin’s statements, while responding to the crash with “firing off the remaining bullets,” also highlight the duality of leverage tools amplifying both profits and losses; such voices from opinion leaders are reshaping retail investors' psychological expectations towards high-leverage products. Looking ahead, the Korean government has indicated that it will research measures to maintain market stability, and the regulatory framework for single-stock leveraged ETFs will likely be recalibrated; the cross-market data linking and risk control shortcomings exposed by the Trade.xyz spike incident may drive industry discussions on standardizing data sources and handling exceptional quotes; and under the current public information showing no regulatory body has made explicit penalties or compulsory measures regarding the spike incident, the ongoing evolution surrounding risk control, compensation boundaries, and transparency among crypto platforms will determine for quite some time whether such “on-chain storms” will be seen as isolated incidents or systemic warnings.
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