The 6 May 2010 United States market plunge and rapid rebound was called the Flash Crash.
During the event, major American stock indexes fell extremely quickly before recovering much of the decline within minutes. The Dow Jones Industrial Average briefly lost nearly 1,000 points, an extraordinary move for such a short period.
Investigations identified a combination of market stress, automated trading, liquidity withdrawal, and a large sell order as important contributors. High-frequency trading systems and fragmented electronic markets amplified the movement, although the event did not have one simple cause.
The Flash Crash differed from a conventional bear market because its most dramatic losses and recovery happened intraday. It led regulators and exchanges to strengthen circuit breakers, improve coordination, and examine how automated strategies interact during periods of stress.