Welcome to the market distortion edition of Natural Gas Daily!
DGAZF made headlines this week with a ridiculous squeeze that saw the share price rocket to $25,000. Yes, that's $25 with 3 zeros behind it. DGAZF was positioned in September contracts (shorts), but the way these levered ETNs get positioned is through counterparty contracts meaning they aren't actually short 3x September contracts. Instead, they are derivative contracts that settle based on the moves in the underlying via a counterparty.
Normally, these 3x ETNs can offset each other's exposure. For example, [[UGAZF]] would be long 3x