What was the nickname of the sudden 2010 U.S. market collapse and rebound?

The sudden 2010 U.S. market collapse and rebound was nicknamed the Flash Crash.

On May 6, 2010, major U.S. stock indexes fell sharply within minutes and then recovered much of the decline. The Dow Jones Industrial Average briefly dropped nearly 1,000 points, or about 9%, before rebounding. Some individual securities traded at extremely unusual prices during the disruption.

Investigations concluded that automated trading and a large sell order contributed to the event, while interactions among high-frequency traders and market structures amplified the movement. In 2015, U.S. authorities charged trader Navinder Singh Sarao with using spoofing-related orders connected to the crash; he later pleaded guilty in the United States.

The Flash Crash highlighted how electronic markets can transmit disturbances at extraordinary speed. Regulators subsequently changed safeguards, including market-wide circuit breakers and rules for clearly erroneous trades. It was brief, unlike the prolonged declines associated with 1929 or 2008.