The 2010 Flash Crash caused a rapid, temporary collapse in U.S. stock prices on May 6, 2010.
During that afternoon, major U.S. equity indexes plunged within minutes before recovering much of the loss. Some individual securities briefly traded at extremely low prices, while others recorded unusual spikes. The event showed how electronic markets could move at exceptional speed.
Investigators found that automated trading and a large sell order contributed to the episode, although the precise interaction of market conditions and trading systems received extensive analysis. Regulators later introduced safeguards, including improved circuit breakers and rules addressing clearly erroneous trades.
The 2010 event differs from the 1987 crash because it was exceptionally rapid and largely reversed the same day. It also differs from the 2020 COVID-19 sell-off, which unfolded over several weeks rather than a few minutes.