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Markets16 July 2026

VIX spiked 180% to 66 in August 2024—BIS report blames bid-ask spread distortion

via Bank for International Settlements

The CBOE volatility index recorded its largest ever one-day spike on August 5, 2024, jumping 180% pre-market to nearly 66. BIS analysis found asymmetric widening of options bid-ask spreads artificially inflated the VIX calculation. The incident highlights risks in selling volatility and shows how market structure can amplify fear-gauge readings beyond actual risk.

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Bank for International Settlements
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