The list can go on and on, including Morgan Stanley in 2004, Lehman Brothers in 2001. The question is, why flash crashes happen and how to avoid them?
This stuff seems interesting to me but I lack background, background that is not so easy to find. Do you have good links for more basic questions: "What precisely is a flash crash?", "Why are they considered bad?", "Are they actually bad?".
The US government seems to believe that 'flash crashes' are 'bad' as after the dow dropped ~1,000 points in only a few minutes the SEC instituted new trading rules that were designed to prevent future flash crashes.
I am not entirely sure why many people consider them to be bad, as I would argue that they are simply the market allowing to "discover" the price of a security on it's own