Not only does she face stiff competition for the seat from California Attorney General Kamala Harris (D), who's raised more than $2 million. But there was also the whole thing this weekend where while speaking to state Democrats, she differentiated between Indian-Americans (from India) and Native Americans by doing a "war cry" -- complete with her hand over her mouth. It's like starting a race from behind, and then pulling your hamstring when the gun goes off.
Sanchez answered the question by saying, "Let me be very clear: I am running for the United States Senate." Which is only clear insofar as it ignores the actual question and leaves open the possibility of switching back to her reelection campaign.
She's running for Senate right now; that much is clear. Also it's also clear that her already-slim chances of winning are looking quite a bit thinner today.