Flash crash
A flash crash is a very fast, deep drop in prices that happens in minutes or seconds and is followed by a quick rebound. It usually happens when many traders pull back, stop offering to buy or sell, and liquidity dries up. Fast trading systems and algorithms can amplify the moves, but the core idea is a sudden rush of risk that makes markets pause trading.
Some notable flash crashes:
- May 6, 2010 (United States): The Dow Jones fell more than 1,000 points in about 15 minutes on the NYSE and then recovered to near where it started.
- June 22, 2017: Ethereum price on the GDAX exchange slumped from about $317 to $0.10 in minutes after a large sell order; later investigations found no proven wrongdoing.
- October 7, 2016 (Britain): The pound dropped about 6% in two minutes against the dollar amid Brexit concerns, then recovered most of its losses.
- January 2, 2019: The US dollar fell more than 4% against the yen and the Australian dollar in a few minutes before rebounding.
- May 2, 2022 (Europe): Nordic stock indices fell sharply (around 4–7%), then rebounded; later it was linked to a very large accidental sell order by a market participant. Citigroup acknowledged an input error by a trader in London.
- October 2013 (Singapore): The Singapore Exchange saw a major crash that wiped out about $6.9 billion in market value and caused some stocks to lose large percentages; new trading safeguards were introduced in 2014.
- November 25, 2014: A pair of very brief moves beyond 1% in several stocks, followed by quick recovery.
In general, flash crashes are marked by a rapid bounce back. If prices fall and don’t recover quickly, that’s usually called a crash rather than a flash crash.
This page was last edited on 3 February 2026, at 10:42 (CET).