The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) surged 6.59% to close at $44.49 on January 27, as market volatility spiked amid concerns over the impact of China's DeepSeek AI model on tech stocks. The VIX, a key measure of market volatility, rose over 15% as investors reacted to the potential disruption posed by DeepSeek's cost-effective AI advancements, which have raised fears of a tech bubble burst. This anxiety was compounded by significant declines in major tech stocks, with Nvidia dropping 16.9% and Broadcom losing 17.4%, contributing to a broader sell-off in the Nasdaq Composite, which fell 3.07%. The heightened demand for VIX options, particularly upside calls, reflects the market's nervousness ahead of the Federal Reserve's policy meeting later this week.