The 2010 event in which the Dow briefly lost nearly 1,000 points was called the Flash Crash.
It occurred on May 6, 2010, during a period of anxiety about the Greek debt crisis and wider European financial conditions. U.S. equity markets experienced an extremely rapid fall and partial recovery within minutes. The Dow Jones Industrial Average dropped about 1,000 points, roughly 9%, before recovering much of the loss.
Investigations found that electronic trading and automated order systems played important roles. A large sell order in an already nervous market interacted with high-frequency trading and other automated strategies, reducing liquidity and amplifying price movements. Some individual securities briefly traded at implausible prices.
The event differed from a traditional, sustained crash because much of the decline reversed quickly. Regulators responded with measures including single-stock circuit breakers and later market-wide safeguards. The Flash Crash is therefore a key example of how market technology can accelerate both selling and recovery.