The Flash Crash was the 2010 U.S. market crash that lasted about 36 minutes.
On May 6, 2010, major U.S. stock indexes suddenly plunged and then recovered much of the loss within the same trading session. The Dow Jones Industrial Average briefly fell about 1,000 points, or nearly 9 percent, before rebounding. Some individual securities experienced extreme and temporary price movements.
Investigations concluded that high-frequency trading and a large automated sell order contributed to the turmoil. Selling pressure interacted with fragmented markets, automated responses, and declining liquidity. The event demonstrated that computer-driven trading can amplify a rapidly developing imbalance even without a traditional economic panic.
The crash led regulators and exchanges to improve market safeguards. Measures included circuit breakers, single-stock trading pauses, and tighter oversight of automated trading. The event is distinct from a conventional bear market because its most dramatic losses and recovery occurred within minutes rather than over months or years.