Velocityshares 3X Long Natural Gas ETN (UGAZ)

[researcher59]

OT - XIV did not follow the VIX, it followed the VIX futures which were too illiquid to remain in synch with the VIX .... XIV closed at $99 on that fateful Monday at 4pm. It crashed in the minutes therafter, NOT because the VIX was rising after 4pm, but because the VIX futures became out of synch with the VIX due to insufficient liquidity.

Smart money, including potentially Credit Suisse, was front running the massive short cover, effectively stealing money from the dumb money that remained invested in XIV which became a dog chasing its tail after 4pm. I'm sure the Prospectus has all kinds of cautionary language, but if for example, Credit Suisse took advantage of the impending massive short cover by front running and fueling the fire that led to XIV's demise, then those are solid grounds for a class action lawsuit.

There were clearly abuses that took place, but that happens all the time in stocks anyway, so in the end probably nothing will come of it.