Flash crashes can happen beyond the instant control of humans. They might be produced by algorithmic trading programs, setting off one another to offer in a feedback loop. When such programs are handling big volumes of possessions, the effects of such a loop can be significant. This can then overflow into the futures market and trigger a knock-on waterfall of liquidations including additional momentum to the decrease. Sometimes, a flash crash can be an outcome of deliberate market control or nasty play, where big financiers called “whales” utilize techniques such as stop searching or developing phony buy/sell walls.
