Up Crashes, from T.K Marks
Apropos of this derivative-centric world, I'll never forget the first time I was asked, "what might happen if there were a crash UP?"
Bill Rafter writes:
There were "up crashes". During the flash crash in May there were some thinly traded ETFs that had big range days with the activity being on the upside. I believe that was because they were involved in some long/short strategies such that when the holder dumped the long side, he covered the short ETF driving it up.