The plunge in U.S. stocks just after 3 p.m. went beyond a normal reaction to economic circumstances and had elements of a liquidity-driven selloff like the one that landed on markets in May 2010, an analyst said.
“We can officially call the last 20ish minutes a flash crash,” said Dennis Debusschere, head of portfolio strategy at Evercore ISI. Loosely defined, the term “flash crash” denotes a phenomenon in electronic markets in which the withdrawal of stock orders rapidly exacerbates price declines.
