The Flash Crash of 2010 was nondissimilar: stocks were available at a ridiculously good price, and as people realized this, they created buy orders driving back up the price.
Bitcoin may be more vulnerable to these crashes than other currencies, commodities, stocks, or similar instruments. It's got a smaller size, lower volume, generally high volatility, and no sophisticated market instruments or automated high-frequency trading algorithms operate to make the market more efficient.
(oblig. disclaimer. this post is not a bitcoin advocacy post or a bitcoin hate post, but rather is meant to explore interesting properties of markets.)
Bitcoin may be more vulnerable to these crashes than other currencies, commodities, stocks, or similar instruments. It's got a smaller size, lower volume, generally high volatility, and no sophisticated market instruments or automated high-frequency trading algorithms operate to make the market more efficient.
(oblig. disclaimer. this post is not a bitcoin advocacy post or a bitcoin hate post, but rather is meant to explore interesting properties of markets.)