Multiplier etfs, yeah I really wonder about the systemic risks too. If a 20% move can bankrupt one of these 5x funds, who else will be relying on them for obligations that can't get paid and the whole thing just keeps cascading. The gamblers might end up causing the conservative grandmother to lose her savings too, through no fault of her own.
Margin calls, trade executions, etc., lots of things don't work perfectly during quickly falling or crashing markets. Gotta have a margin of safety to protect the system.