The Flash Crash was the May 6, 2010 U.S. market event in which prices plunged and rapidly recovered.
During the afternoon of May 6, major U.S. equity indexes dropped sharply within minutes. The Dow Jones Industrial Average briefly lost nearly 1,000 points, or about 9 percent, before recovering much of the decline. Individual securities experienced extreme and temporary price movements, including trades at unusually low or high prices.
A joint investigation by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission concluded that a large sell order in an already stressed market helped trigger the episode. High-frequency trading and automated liquidity withdrawal amplified the move.
The Flash Crash differed from a traditional bear market because its most dramatic price changes happened within minutes and partly reversed the same day. Regulators responded with measures including circuit breakers and rules aimed at reducing destabilizing trading behavior.