The 2010 Flash Crash occurred on May 6, 2010, when U.S. stock markets briefly lost and rapidly recovered nearly $1 trillion in value.
The Dow Jones Industrial Average plunged about 1,000 points, or roughly 9%, during the afternoon session. Many securities experienced unusually sharp and temporary price moves, and some trades were executed at extremely low or high prices before being canceled.
Investigations by U.S. regulators found that a large automated sell order, combined with high-frequency trading and stressed market conditions, helped trigger the disorder. The event demonstrated how electronic markets could amplify a short-lived imbalance.
The crash led to new safeguards, including market-wide circuit breakers and rules for handling clearly erroneous trades. It is distinct from the 2008 financial crisis and the 2015 China-related market turmoil.