The rapid 2010 U.S. market plunge and rebound linked to high-frequency trading was called the Flash Crash.
On May 6, 2010, major U.S. stock indexes fell sharply within minutes before recovering much of the loss. The Dow Jones Industrial Average briefly dropped nearly 1,000 points, one of its largest intraday point declines at that time.
Investigations found that automated trading, unusual market conditions, and a large sell order contributed to the disruption. The event showed how electronic markets could amplify temporary imbalances when liquidity disappeared across many securities at once.
The Flash Crash was not a conventional multi-month bear market. Its defining feature was speed: prices moved dramatically downward and then rebounded during the same trading session. Regulators later introduced or strengthened safeguards such as circuit breakers and trading controls.