The 2010 U.S. stock-market crash caused by an extremely rapid sell-off was called the Flash Crash.
On May 6, 2010, major U.S. stock indexes suddenly plunged and then recovered much of the loss within minutes. The Dow Jones Industrial Average briefly lost almost 1,000 points, while many individual securities experienced extraordinary price movements.
Investigations found that automated and high-frequency trading played an important role in the episode. A large sell order in the futures market interacted with already stressed market conditions and automated trading systems, producing a rapid feedback loop of selling and liquidity withdrawal.
The event did not resemble the long economic collapse of 1929 or the banking crisis of 2008. Its defining feature was speed: prices moved violently during a single afternoon and partially rebounded before the close. Regulators subsequently introduced safeguards, including single-stock circuit breakers and broader mechanisms intended to slow disorderly trading.