The 2010 Flash Crash occurred on May 6, 2010.
On May 6, 2010, U.S. stock indexes suddenly plunged during afternoon trading and then recovered much of the loss within minutes. The Dow Jones Industrial Average briefly fell nearly 1,000 points, an unusually large move for such a short period. Many individual securities also traded at extreme prices before normal market conditions returned.
Investigations by U.S. regulators concluded that a large automated sell order, combined with already fragile and highly automated market conditions, helped trigger the event. High-frequency trading and interactions among different trading venues amplified the movement.
The crash was not the same as the 2008 financial crisis, which developed through a prolonged banking and credit collapse. It also differed from a conventional bear market because the most dramatic fall and rebound happened within minutes. The episode led to reforms including single-stock circuit breakers and market-wide safeguards.