The ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) closed down 33.77% to $10.20 on January 27, as Nvidia shares plummeted 15.28% to $120.83 amid concerns over the rise of Chinese AI startup DeepSeek. DeepSeek's introduction of AI models that rival Western chatbots at a fraction of the cost has sparked fears of a disruption to Nvidia's high-margin business model. The R1 model, in particular, is reported to be 27 times cheaper than comparable offerings from established players like OpenAI, challenging Nvidia's dominance in the AI hardware market. This has led to a massive sell-off in Nvidia shares, contributing to a broader tech sector decline, with the Nasdaq Composite falling 3.6%. Leveraged Nvidia ETFs, including NVDX, faced significant outflows, totaling over $1 billion, as investors reassessed their positions in light of the potential competitive threat posed by DeepSeek.