The 2010 US market event in which stocks plunged rapidly and recovered within minutes is known as the flash crash.
On May 6, 2010, major US stock indexes fell sharply during afternoon trading. The Dow Jones Industrial Average briefly lost about 1,000 points, or roughly 9 percent, before recovering much of the decline. Many individual securities experienced extreme, short-lived price movements.
Investigations concluded that high-frequency trading and automated order systems amplified a large sell order in already stressed markets. A later US Department of Justice case identified trader Navinder Singh Sarao’s spoofing activity as a contributing factor, although the event involved broader market-structure issues.
The flash crash differed from a conventional bear market because its most dramatic movements occurred over minutes rather than months or years. It prompted changes to circuit breakers and other safeguards intended to limit disorderly trading.