A rapid price plunge, also known as a "flash crash," is a sudden and dramatic decline in asset prices, characterized by:

1. Speed: Prices drop rapidly, often in a matter of minutes or seconds.

2. Magnitude: The decline is significant, typically exceeding 10% or more.

3. Unexpectedness: The plunge is often unanticipated, catching market participants off guard.

4. Market wide: The decline can affect multiple assets or markets simultaneously.

5. Liquidity crisis: Trading volumes may surge, leading to a temporary liquidity crisis.

6. Market disruption: The plunge can cause trading halts, circuit breakers, or other market disruptions.

7. Systemic risk: In extreme cases, a rapid price plunge can pose systemic risk, threatening the stability of the entire financial system.

Examples of rapid price plunges include:

1. 2010 Flash Crash (May 6, 2010): The Dow Jones Industrial Average plummeted 9.2% in minutes.

2. 2013 Flash Crash (April 23, 2013): The S&P 500 Index fell 1.1% in two minutes.

3. 2020 Global Market Crash (March 16, 2020): Global markets experienced a rapid price plunge, with the S&P 500 Index falling 12% in a single day.

Rapid price plunges can be triggered by various factors, including:

1. High-frequency trading glitches

2. Algorithmic trading errors

3. Market sentiment shifts

4. Economic shocks

5. Geopolitical events

6. Regulatory changes

7. Flash crashes can also be exacerbated by market fragmentation, liquidity imbalances, and investor herding behavior.