On a more serious note, this all has to do with Shorters of this ETF. They have all come to try to play the game of Short on the Pop, because it has held true over the past several months. Think of how shorting works...borrow shares and sell them now with the promise of buying more at a later date and returning them. Thus you have a HIGH level of people all trying to SELL UVXY right now, dragging the price down. Buyers are harder to find because the ETF only seems to go down down down, and thus the bid price isn't very high. Basically until there is an actual catalyst that causes a short squeeze (requirement to BUY alot of the stock to cover), the shorters will control the price of this ETF.
Sorry, but you're way off base on this. Try reading the UVXY prospectus before you post ridiculousness. There is no such thing as a "short squeeze" when algo controlled. Now, we may see excess covering due to margin calls on heavy upswings, but this has very close to $0 affect on the bid/ask.
"This Ultra ProShares ETF seeks a return that is 2x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. "
It's quite good at its job. Short interest is inconsequential.
In other words, this is a broken instrument. Only a crazy event will revive it again. It has become easy shorts vehicle. Forget the bull run, Jan 2nd was the turning point. It touched on $30 in AH the last trading day of 2012. First day after deal was made, tanked from $25 fair value to $15. For those that bought AH that day, they literally got killed. Darn good day for shorts though. It has been the best shorts vehicle since.