The 2010 United States flash crash occurred on May 6, 2010, when the Dow Jones Industrial Average briefly lost nearly 1,000 points intraday.
The sell-off unfolded within minutes during an already volatile period shaped by concerns about European sovereign debt. Prices in numerous stocks, exchange-traded funds, and futures contracts moved violently, and some securities briefly traded at implausibly low prices. The Dow recovered much of its loss before the session ended.
Investigations found that automated trading, liquidity withdrawal, and feedback between markets amplified the move. In 2015, U.S. authorities charged trader Navinder Singh Sarao with using spoofing orders; he later pleaded guilty. The event led regulators and exchanges to strengthen circuit breakers and other safeguards.
The flash crash was not the same as a conventional bear market. It was a short-lived market-structure shock, and the exact interaction among algorithms, orders, and liquidity remains an important subject in financial-market research.