There's an instrument to "track" future volatility in the market. There's also an instrument that does the opposite of this volatility. If the volatility move

There's an instrument to "track" future volatility in the market. There's also an instrument that does the opposite of this volatility. If the volatility moves from 15 -> 30, it goes up 100%. What happens if you are "short" (or on the opposite side) of something going up 100%? It loses it's entire value. Now of course it's more complicated, and if the movement from 15->30 happens over a long period of time you can be modifying the hedges to work it out so you don't go to 0.. but if the price SUDDENLY goes up 100% with very little time to react, and you hit all your margin calls on various hedges.. then it's dead.