The May 6, 2010 U.S. market plunge that briefly erased nearly 1,000 Dow points was called the Flash Crash.
During the afternoon of May 6, the Dow Jones Industrial Average fell about 1,000 points, or roughly 9%, within minutes before recovering much of the loss. Individual securities experienced extraordinarily rapid price movements, including trades at implausibly low or high prices. The episode exposed how quickly automated markets could amplify selling.
Investigations by U.S. regulators linked the event to a combination of factors, including a large sell order, algorithmic trading, high-frequency trading, and reduced market liquidity. A joint report by the Securities and Exchange Commission and Commodity Futures Trading Commission examined the sequence in detail.
The crash led to reforms such as single-stock circuit breakers and the broader Limit Up-Limit Down mechanism. It is distinct from a conventional multi-month bear market: the defining feature was the extreme intraday speed and partial recovery.