Credit Suisse said it will end trading in a security that some investors believed was exaggerating movements in volatility futures markets and even the overall stock market.

The last day of trading for VelocityShares Daily Inverse VIX Short-Term exchange-traded note (XIV) will be Feb. 20, according to an announcement from Credit Suisse. The bank is triggering this liquidation because the product during these last three volatile days could not keep up with the scenario it was supposed to track: a calm market.

The XIV security, which had fallen roughly 85 percent in after-hours trade Monday, resumed trading Tuesday, closing down 93 percent.

The security is supposed to give the opposite return of the Cboe Volatility index (VIX), the market's widely followed turbulence gauge. The VIX's value exploded higher, topping 50 Tuesday, which in theory should have wiped out most of the value of the VelocityShares ETN.

Multiple exchange-traded securities that are also supposed to be bets on calm markets were halted Tuesday after losing the majority of their value overnight.

Credit Suisse said late Monday ET that the XIV's plunge would have no "material impact" on the Swiss bank itself. Shares of Credit Suisse slumped nearly 4 percent on Tuesday morning amid the wider sell-off in equity markets.

Other volatility-related funds, including the ProShares Short VIX Short-Term Futures (SVXY), have also fallen precipitously.

ProShares told clients in a release Tuesday morning that "the performance on Monday of the ProShares Short VIX Short-Term Futures ETF (SVXY) was consistent with its objective and reflected the changes in the level of its underlying index."

The ETF resumed trading late Tuesday morning, falling 83 percent by the close.

"That's the instrument that's going haywire," Jim Cramer said Monday during a CNBC special report, referring to the XIV. "It is blowing up as we speak."

"It should put downward pressure on the stock market at the opening, should spike the VIX to 50 and then cause the market to go down," he said Monday.

After the liquidation announcement from Credit Suisse, the value VIX dropped from the 50 level.