Investors are unloading shares of firms listed on the Borsa Istanbul exchange, wiping out billions of dollars in equity value and threatening the stability of the domestic market. The sustained sell-off is pushing Turkish stocks toward a bear market threshold as the financial sector struggles to absorb the impact of a massive investment collapse.

President Recep Tayyip Erdogan described the $18.3 billion scandal as a "limited problem," although the crisis has affected 455,000 investors. The unrest has already forced AK Party Deputy Chair Fatma Betul Sayan Kaya to resign amid insider trading allegations and prompted the government to establish a vice president-led board to manage the liquidation of failing investment funds.