1. A dramatic plunge in South Korean equities sent shockwaves through global markets on Tuesday, triggered by a sharp retreat in artificial intelligence (AI) bets and regulatory warnings over leveraged funds. [para. 1]2. The benchmark Kospi index triggered circuit breakers mid-session before closing 10% lower, dragged down by a 12% plunge in heavyweights Samsung Electronics and SK Hynix, which together account for more than 40% of the index. [para. 2]3. The crash was exacerbated by forced deleveraging in single-stock exchange-traded funds tracking the two chipmakers. A day earlier, an official disclosed regulatory coordination to rein in these funds, triggering the rout. [para. 3]4. Panic rippled across Asia-Pacific, toppling major indexes in Japan and China. [para. 4]5. Meanwhile, a sell-off on Wall Street Tuesday dragged down major chipmakers, including Nvidia and Micron Technology. [para. 5]6. The global tech jitters underscore mounting fears that the immense capital required for AI infrastructure is stretching credit limits — a risk recently flagged by Goldman Sachs. [para. 6]7. With the AI trade increasingly crowded, analysts warn the sector remains highly vulnerable to external shocks. [para. 7]AI generated, for reference only