A British financial trader has been arrested on charges of triggering the 2010 "flash crash" a sharp, short-lived fall in the US markets that took place on 6 May 2010. Navinder Singh Sarao is accused of sending "spoof" orders to sell E-mini futures contracts (derivatives based on the value of the S&P 500 index).
Spoofing involves placing a large volume of orders at prices that are not intended to be executed with intention of creating the impression of a large volume of selling (or buying) pressure in the market. This can encourage other traders to sell (or buy), thereby potentially driving the market down (or up).
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