The 2010 U.S. market plunge that briefly erased nearly $1 trillion in value was called the Flash Crash.
On May 6, 2010, U.S. stock indexes dropped extremely rapidly before recovering much of the loss. The Dow Jones Industrial Average fell about 1,000 points, or roughly 9%, during the session, although it finished down 3.2%.
Investigations linked the event to a combination of high-frequency trading, automated orders, market conditions, and a large sell order. In 2015, U.S. authorities charged British trader Navinder Singh Sarao with spoofing-related conduct connected to the crash; he later pleaded guilty.
The episode differed from classic crashes because its sharpest fall and rebound occurred within minutes. It led exchanges and regulators to examine circuit breakers, order handling, and the risks of automated trading.