Part 6/9:
Despite the success of the Thor router, on May 6, 2010, the financial markets experienced the infamous "Flash Crash." Triggered by a massive sell order from a large mutual fund, the market plunged roughly 1,000 points within minutes due to a feedback loop created by high-frequency trading activities. The chaos underscored the vulnerabilities left unaddressed within the fast-paced trading environment.
The Flash Crash led to an inevitable investigation by regulatory bodies like the SEC and the CFTC. While high-frequency trading was not solely blamed, it played a significant role in amplifying the market's volatility. This event spurred discussions on regulation and the necessity for market safeguards, especially for retail investors.