How can one bad trade send stocks falling off a cliff?

[SteamWake]

In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points before paring those losses in what possibly could have been a trader error

Wasent there another issue like this linked to trading software that caused a rather large burp?

http://www.cnbc.com/id/36999483

I just dont understand how one bad commodity trade can send the entire market into a tailspin.

Thank got it still has some resiancy and bounded back. Bet someone somewhere made a few bucks.

[August]

Originally Posted by SteamWake

I just dont understand how one bad commodity trade can send the entire market into a tailspin.

Computerized stock trading. Once a stock goes below a certain amount the system automatically tries to sell it. Apparently just one "oops" can create a runaway effect.

[krashkart]

Anyone else get the feeling that our species relies too heavily on technology these days?

[August]

Originally Posted by krashkart

Anyone else get the feeling that our species relies too heavily on technology these days?

I been getting that feeling for 30 years.

[CaptainHaplo]

Two theories as to what happened - someone used B for Billion instead of M for Million on a sell order - or its fallout from greece.

There may have been a screwed up trade - but the market is going to get hammered by greece - and the shockwaves (which may be many euro nations defaulting) regardless.

If your in the market - get out... get out NOW!

[SteamWake]

Holy smokes a single keystroke can cause a crash?

That might need some looking in to.