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Do you remember the infamous "Flash Crash" that happened almost 15 years ago?

Posted on 4/23/25 at 6:54 pm
Posted by LSURussian
Member since Feb 2005
130666 posts
Posted on 4/23/25 at 6:54 pm
On May 6, 2010 at approximately 2:45 PM EDT, the stock market crashed.

The Dow Jones 30 Index fell approximately -9% within minutes.

This board was lit. Some posters on here afterwards claimed they sold out big chunks of their stock portfolio in a panic.

It was a wild half hour or so.

Here's a link which describes the event:

LINK
Posted by fallguy_1978
Best States #50
Member since Feb 2018
51379 posts
Posted on 4/23/25 at 7:08 pm to
I remember driving around on my lunch break listening to it on the radio pissed off I wasn't at the office in front of my computer
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
77217 posts
Posted on 4/23/25 at 7:13 pm to
quote:

listening to it on the radio


I was listening to the big 870 WWL as I do every day.
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
71312 posts
Posted on 4/23/25 at 7:25 pm to
Was this when someone hacked the AP Twitter account and posted there was an explosion at the WH and Obama was injured?

Or was that a different flash crash
Posted by James11111
Walnut Creek, Ca
Member since Jul 2020
5236 posts
Posted on 4/23/25 at 7:33 pm to

They blamed it on this guy, but its really a fault in the system.


Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
130706 posts
Posted on 4/23/25 at 7:40 pm to
quote:

It was a wild half hour or so.
It was indeed. Crazy! At that time we were still handling everything under roof. We'd just reaccumulated a decent cash position w/ Cap Gains following the Feb-Mar 09 escapade. I was at the hospital. When the crash happened, MsNC, to her credit, tried to push a large amount of cash in on limit orders. Only ended up bagging about 40% of those. Still quite a haul, but TD Ameritrade was slow. Quite a story when I got home that night .... totally unaware.
Posted by LSURussian
Member since Feb 2005
130666 posts
Posted on 4/23/25 at 7:56 pm to
quote:

MsNC, to her credit, tried to push a large amount of cash in on limit orders. Only ended up bagging about 40% of those. Still quite a haul, but TD Ameritrade was slow.
It seems like some brokers reversed some transactions claiming the event was a force majeure which invalidated some transactions.

I didn't have any trades during the crash so it didn't affect me.
Posted by LSURussian
Member since Feb 2005
130666 posts
Posted on 4/23/25 at 8:02 pm to
quote:

Was this when someone hacked the AP Twitter account and posted there was an explosion at the WH and Obama was injured?
I think that was the crash in 2013.
Posted by slackster
Houston
Member since Mar 2009
89215 posts
Posted on 4/23/25 at 8:48 pm to
I know a few people that found out how a stop loss worked the hard way…
Posted by jefforize
Member since Feb 2008
45005 posts
Posted on 4/23/25 at 8:51 pm to
Sucks when your SL gets gapped over because no one was buying at your price .
Posted by slackster
Houston
Member since Mar 2009
89215 posts
Posted on 4/23/25 at 9:07 pm to
quote:

When the crash happened, MsNC, to her credit, tried to push a large amount of cash in on limit orders. Only ended up bagging about 40% of those. Still quite a haul, but TD Ameritrade was slow. Quite a story when I got home that night .... totally unaware.


What does/did your wife do that she was aware and able to place a bunch of limit orders during the 36 minutes of the flash crash?

Maybe I’m misunderstanding and you had some optimistic GTC limit orders that you had placed prior to the crash, but the way you’re telling the story sounds almost unbelievable.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
42705 posts
Posted on 4/23/25 at 9:17 pm to
yes, a 36 year old man with autism who worked from his parents home as a trader cause the second biggest intraday point decline in the Dow
Posted by slackster
Houston
Member since Mar 2009
89215 posts
Posted on 4/23/25 at 9:30 pm to
quote:

yes, a 36 year old man with autism who worked from his parents home as a trader cause the second biggest intraday point decline in the Dow


He was never blamed for the entire thing. He wasn’t even arrested until 2015. There were multiple reports blaming HFT, algos, etc before he even came up. The SEC report itself never even mentioned him.

His trading came up later and was found to have exacerbated the problem. This thread has a little revisionist history.
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
144258 posts
Posted on 4/23/25 at 11:12 pm to
quote:

I was listening to the big 870 WWL as I do every day.
powerhouse of the gulf south
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
130706 posts
Posted on 4/24/25 at 4:14 am to
quote:

What does/did your wife do that she was aware and able to place a bunch of limit orders during the 36 minutes of the flash crash?
She trades stocks. Summa Cum Laude Accounting/Finance. Eventually left the office to WFH managing our accounts. So to answer your question, that's what she does.

The day of the crash, she had CNBC on per the norm, and was in the office, at the computer, lining up a couple of orders when the thing hit. Those orders went through. Nothing else did. Makes it sound like we're a pair of day-traders. We aren't. But just the way it happened that day.
This post was edited on 4/24/25 at 6:11 am
Posted by slackster
Houston
Member since Mar 2009
89215 posts
Posted on 4/24/25 at 6:33 am to
Well that makes sense.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
31752 posts
Posted on 4/24/25 at 6:39 am to
quote:

She trades stocks. Summa Cum Laude Accounting/Finance. Eventually left the office to WFH managing our accounts. So to answer your question, that's what she does.

Sounds like she should be on this board, not you baw
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
130706 posts
Posted on 4/24/25 at 7:56 am to
quote:

Sounds like she should be on this board, not you baw
The chance of her interfacing with scoundrels here is just about zero.

But I have a bit more time to keep up with markets now than I did then
Posted by bigjoe1
Member since Jan 2024
762 posts
Posted on 4/24/25 at 8:42 am to
quote:

On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid 22 criminal counts, including fraud and market manipulation, against Navinder Singh Sarao, a British financial trader. Among the charges included was the use of spoofing algorithms; just prior to the flash crash, he placed orders for thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later.[11] These orders amounting to about "$200 million worth of bets that the market would fall" were "replaced or modified 19,000 times" before they were canceled.[11] Spoofing, layering, and front running are now banned.[4]


I'd forgotten about that. Where have the years gone?From LSURUSSIANS link. 19000 times.
That high functioning autism is something else.
Posted by DWaginHTown
Houston, TX
Member since Jan 2006
10111 posts
Posted on 4/24/25 at 8:57 am to
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