What significant event is referred to as the Flash Crash?

The significant event referred to as the Flash Crash is indeed characterized by a sudden stock market crash lasting approximately 36 minutes. This incident occurred on May 6, 2010, when the U.S. stock markets experienced a rapid and severe drop, with the Dow Jones Industrial Average plunging over 1,000 points within minutes before quickly recovering. The Flash Crash is attributed to a combination of high-frequency trading algorithms and market inefficiencies, which resulted in massive sell-offs and a temporary loss of liquidity in the market.

Understanding this event is crucial in recognizing the complexities and vulnerabilities of modern financial markets, especially concerning the roles of technology and trading strategies. In contrast, the other options do not capture the essence of the Flash Crash; they refer to different types of financial events that do not involve the abrupt, short-term market dynamics that defined the Flash Crash.