Why Sandisk Stock Suddenly Crashed Today

Sandisk stock plummeted 11% after South Korea's Financial Supervisory Service warned about leveraged ETFs tracking memory chip stocks. The FSS approved 16 single-stock leveraged ETFs in May that track Samsung and SK Hynix with 2x leverage, creating artificial market volatility. These high-risk products have grown to over $9 billion and may have artificially inflated memory stock prices, raising questions about whether Sandisk's 4,700% gain in 52 weeks was justified.