How do flash crashes recover?
I saw in Wikipedia's flash crash article that the flash crashes usually related to automated trading. I also read about the Ethereum flash crash few days ago that took few seconds to drop to 0.1$.
From an article about the Ethereum crash:
[...] the flash crash was the result of someone placing a multi-million-dollar sell order at market price [...].
Filling this order caused ETH prices to instantly slip 30% to \$224 - which in turn caused 800 stop loss orders and margin liquidations, which further drove > the price down, to as low at $0.10.
I understand that one big sell and another many instant automatic sells dropped the price to the floor, but why it came back in seconds back to where it was before? What bumps the price back up? How flash crashes recover so quickly?