Volatility decay destroys leveraged ETF returns during market declines, multiplying losses far beyond single-beta exposure. When TQQQ dropped 50% while QQQ lost only 17%, that was volatility decay in action - every drop gets multiplied, and each recovery starts from a lower base. A 50% loss requires 100% gain just to break even. This article shows why holding leverage through declines compounds disaster and how layered crossover stops prevent volatility decay accumulation.
