Approximately 1,000 Dow Jones points disappeared during the 2010 Flash Crash before most losses reversed.
On May 6, 2010, U.S. markets experienced an extraordinarily rapid collapse and partial recovery. The Dow Jones Industrial Average fell about 1,000 points, or nearly 9%, within minutes, with the sharpest movement occurring in a much shorter interval.
The event affected stocks, futures, exchange-traded funds, and other securities. Investigations found that automated trading, market liquidity, and a large sell order in E-mini S&P 500 futures all played roles in the unusual conditions. A trader, Navinder Singh Sarao, was later charged in connection with spoofing activity, although the event involved wider market mechanisms.
The Flash Crash is not the same as a conventional bear market, which develops over months or years. It is also distinct from the 1987 crash because the 2010 episode largely reversed the same day. Regulators later introduced safeguards, including circuit breakers and trading pauses.