No one knows what's happening in XIV and it's causing a panic

The inverse-volatility ETF is imploding

The XIV inverse EFT is trading at $19 after closing at $99. The fear is that it's going to be liquidated and go to zero.

I'm not sure that makes sense if the fund owns VIX futures that still have value. But I'm not an expert on that.

Still, something is blowing up and there is a real threat of contagion. Credit Suisse, which runs the ETF, is down 5% in the after hours.

If it goes to zero, it's going to mean a massive amount of VIX futures selling tomorrow.

No one really knows what's happening but this could be very, very ugly.

More here.

For more on the XIV implosion:

• The XIV is going to be the first big ETF blowup and Credit Suisse is going to be hit hard
• Could this be why the XIV crashed? It's only worth $4.22
• XIV, SVXY collapse in after hours - not reflected in forex moves