The Dow Jones Industrial Average lost and recovered hundreds of points in about 36 minutes during the 2010 Flash Crash.
On May 6, 2010, major U.S. stock indexes suddenly plunged, with the Dow dropping nearly 1,000 points before recovering much of the loss. Some individual securities briefly traded at bizarre prices, including shares quoted at fractions of a cent. The speed and breadth of the move made it unlike a conventional gradual bear market.
Investigations found that a large automated sell order, combined with high-frequency trading and stressed market liquidity, helped produce the cascade. A later U.S. Justice Department case concluded that trader Navinder Singh Sarao contributed through spoofing activity, though the event also exposed broader market-structure vulnerabilities. Circuit breakers and other safeguards were strengthened afterward.