The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) surged 10.61% to close at $19.71 on January 27, 2025, as market volatility spiked amid escalating concerns over a potential AI-driven market disruption. The VIX, often referred to as Wall Street's fear gauge, jumped above 22 early Monday, reflecting heightened investor anxiety following the emergence of DeepSeek, a Chinese AI startup that has challenged the dominance of U.S. tech giants. This development led to a significant selloff in tech stocks, with Nvidia's market value alone dropping by over $400 billion. The surge in VIX call demand, nearing record highs, provided traders with protection against the market rout, as they had previously capitalized on low volatility to purchase VIX calls. The market's reaction underscores the sensitivity to geopolitical and technological shifts, with investors seeking hedges against potential further declines.