The leveraged exchange-traded fund ProShares Ultra Silver (AGQ), which seeks twice the daily performance of silver bullion, surged 5.12% during the after-hours trading session. This significant upward move follows a period of extreme volatility and a historic selloff in the underlying precious metal.

The sharp rise appears to be a technical recovery after silver prices experienced one of their most dramatic declines in decades. Market analysts indicate the recent plunge was triggered by the nomination of Kevin Warsh as the next Federal Reserve Chair, which spooked markets and reversed the "debasement trade" that had fueled the precious metals rally. Additionally, the CME Group's decision to raise margin requirements on gold and silver futures forced leveraged traders to liquidate positions, creating a vicious cycle of selling that revealed acute liquidity stress.

The leveraged nature of the AGQ ETF amplifies both downside and upside moves in silver prices. The after-hours gain reflects some traders viewing the sharp decline as a potential buying opportunity amid ongoing market uncertainty, with silver's thinner and more speculative market magnifying these liquidity-driven movements.