The news report:
In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points before paring those lossesall apparently due to a trader error.
According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble [PG 60.75 -1.41 (-2.27%) ], a component in the Dow. (CNBC's Jim Cramer noted suspicious price movement in P&G stock on air during the height of the market selloff. Watch.)
Sources tell CNBC the erroneous trade may have been made at Citigroup [C 4.04 -0.14 (-3.35%) ].
"We, along with the rest of the financial industry, are investigating to find the source of today's market volatility," Citigroup said in a statement. "At this point we have no evidence that Citi was involved in any erroneous transaction."
According to a person familiar with the probe, one focus is on futures contracts tied to the Standard & Poors 500 stock index, known as E-mini S&P 500 futures, and in particular a two-minute window in which 16 billion of the futures were sold.
http://www.cnbc.com/id/36999483
So.....couldnt this easilly be manufactured?
You make a "mistake" setting off a panic.... but then profit off shorting and then futures as it rebounds? Especially because of all the automated sell orders, as the stock gets lower, more sell orders activate, lowering the stock etc etc.
In other words.....more juice for the regulation machine?