I'm not suggesting this is what occurred, but it's an interesting read.
The risk is simple:
SVXY tracks the inverse of volitility or VIX. As a trader you should know that bullish strategies have limited downside risk and unlimited profit potential. Since this etf tracks the inverse of that function, then if volatility goes up 100% or more, then the inverse ETF can go to zero giving back gains in a day that took years of low volatility to accumulate by a spike in the VIX especially when the inverse is at ATH making any spike in the VIX much more risky and significant.
XIV did not resume trading because they liquidated the asset.
Proshares is at least giving investers the chance to make a decision for themselves.
I hope that traders to not put the blame on any of the inverse ETF's and take responsibility for there investment decisions.
DO NOT INVEST WITHOUT STOPS & A PLAN
They clearly warn investors that the asset is risky and the math is simple on how inverse ETFs can go to $0.
You say they deserver to get sued, and I'm sure some law firm might try, but on what basis:
that volatility spiked across the market and all inverse ETFs conspired to lose there value, based on the function they track which performed as expected, leaving investors (with no plan, no stops, and no clue of the risks associated with the assets they are investing in) with losses?
I am sincere that I hope you and other traders on here didn't lose alot of money. If alot of money was lost I just think instead of blaming someone else it would be more beneficial to learn from this by doing: more due diligence on the risk of assets especially risky ones(any ETF that doesn't track real assets, inverse, and 3x), and always trade with a plan.
here is a good reaD: