The 2010 market event in which the Dow briefly plunged about 1,000 points was called the Flash Crash.
On May 6, 2010, US stock markets experienced an exceptionally rapid decline and partial recovery. The Dow Jones Industrial Average lost about 1,000 points, or nearly 9%, within minutes before recovering much of the drop. Some individual securities briefly traded at extremely low prices.
Investigations by US regulators concluded that a large sell order in E-mini S&P 500 futures interacted with high-frequency trading and market-liquidity conditions. The exact mechanics were complex, and the event demonstrated how automated strategies could amplify a sudden imbalance between buyers and sellers.
The Flash Crash differed from a conventional bear market because most of the dramatic movement occurred within a single trading session and much of it reversed quickly. In 2015, trader Navinder Singh Sarao was charged in the United States in connection with spoofing-related conduct linked to the event.