What was the nickname of the May 6, 2010 U.S. stock-market plunge?

The May 6, 2010 U.S. stock-market plunge was nicknamed the Flash Crash.

During the afternoon of May 6, major U.S. equity indexes dropped rapidly and then recovered much of the loss within minutes. The Dow Jones Industrial Average fell nearly 1,000 points, roughly 9%, before rebounding. Some individual securities experienced far more extreme temporary moves.

Investigations found that high-frequency trading and market structure played important roles. A large sell order in E-mini S&P 500 futures interacted with automated trading systems and reduced liquidity, accelerating the decline. The precise chain of events involved several participants and mechanisms rather than a single simple cause.

The Flash Crash led regulators and exchanges to introduce safeguards, including circuit breakers and rules intended to pause trading during disorderly moves. It differed from the 1987 crash because its most dramatic decline and recovery unfolded in minutes rather than over a full session.