Which U.S. market crash began after the 1901 Northern Pacific Railway corner?

The U.S. market crash that began after the 1901 Northern Pacific Railway corner was the Panic of 1901.

A struggle for control of Northern Pacific Railway shares caused an extreme short squeeze in May 1901. Investors who had sold shares short were forced to buy stock at rapidly rising prices, while other railroad shares were pulled into the turmoil.

The squeeze ended abruptly when the share price collapsed. The episode damaged confidence and contributed to a sharp market decline, although the U.S. economy did not experience the same banking emergency later associated with the Panic of 1907.

A market corner occurs when one group gains effective control of a large enough supply of shares to manipulate prices or pressure short sellers. The Northern Pacific episode is a classic example and is sometimes confused with the later panic linked to the failure of Knickerbocker Trust.