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Flash-Crash Story Looks More Like a Fairy Tale

May 8 (Bloomberg) -- Two years after the frightening spring day when the Dow Jones Industrial Average lost and regained about 600 points in a matter of minutes, we still don’t really know why. This is a problem, because it means something similar -- or worse -- could happen again.

The Flash Crash of May 6, 2010, was more than a mere technical glitch. A hedge fund in Dallas lost several million dollars when the price of options it was buying suddenly spiked from 90 cents to $30 per contract. A man named Mike McCarthy lost $17,000 because his order to sell shares in Procter & Gamble Co. happened to be executed at roughly 2:46 p.m., just after the price hit rock bottom.