The meltdown in a leveraged VIX-futures exchange traded note has raised serious questions over volatility-linked products and ETNs in general.

VelocityShares Daily 2x VIX Short-Term ETN (TVIX) lost more than half its value late last week after the premium that had built up in the ETN collapsed. It was down an additional 12% on Monday.

“This is a wake-up call,” Morningstar analyst Samuel Lee told Bloomberg News.

Credit Suisse, the issuer for TVIX, temporarily halted new share creation of the ETN in February. This resulted in the fund trading at a premium to indicative value. The premium surged to 90% last week before snapping back violently, causing TVIX to fall sharply on Thursday and Friday in heavy trading. [What Happened with TVIX]

“People don’t take seriously the options that issuers have” that can cause ETNs to be influenced by factors other than the asset class they are tracking, Lee said in the Bloomberg story. [TVIX Falls More After Issuance Restarted]

“The industry as a group makes the argument that they are only dealing with sophisticated investors who read prospectuses and understand the risks,” they analyst added. “This is sort of a fantasy world.” [Volatility ETN Diverges from VIX]

Credit Suisse, the issuer for TVIX, late Thursday said it would reopen share creation for the ETN following the initial plunge. The timing of the announcement has raised eyebrows and caused some to wonder if the move was leaked, Index Universe reports.

VelocityShares Daily 2x VIX Short-Term ETN

An earlier version of this story erroneously said Deutsche Bank is the issuer for TVIX. It has been corrected to reflect Credit Suisse is the issuer.