Single-stock, leveraged ETFs betting heavily on Nvidia's blistering rally plunged overnight, tracking losses logged by the chip darling.

Short-term traders are proving eager to bet on a rapid recovery in Nvidia , pouring money into the three largest leveraged exchange-traded funds which are linked to gains in the share price of the AI chipmaking giant.

Day traders spent last year shoving billions of dollars into leveraged Nvidia Corp. ETFs in a bid to amp up their gains on the hottest stock on the planet. Now those wagers are in peril.