Originally Posted by
Daytr
There was a massive sell order put through last night that created a flash crash. 11k contracts pushed through saw the market drop $30 in minutes only to bounce back equally as quickly. According to CME it wasn't a mistake or fat finger trade.
If this wasn't a mistake & it was a hedge fund trying to force the market lower they will obviously be very disappointed & they have used a lot of ammunition for no gain. Perhaps they prevented the market going higher, however the risk is now they may have to cover at a loss. Again, if it wasn't a mistake, it suggests that someone else or multiple positions used the opportunity to close out shorts. Either way the bounce back appears very bullish as for the market to respond like it did with such a volume of selling is quite remarkable.