Explaining the NYSE Glitch That Tanked Berkshire Hathaway by 99% in ONE second

In today's video, we dive into the shocking moment when Berkshire Hathaway's stock plummeted 99.97% in a single second due to a glitch in the market. What caused this massive drop? And what exactly was the glitch?

I'll break down the events leading up to the crash, explain the technical glitch that caused it, and discuss the aftermath for investors. Plus, we'll look at the broader impact on the market, including other affected stocks like Chipotle and Barrick Gold.

Learn about the Consolidated Tape Association (CTA) and the Securities Information Processor (SIP) that played a crucial role in this event. We'll also discuss the NYSE's reaction and the policies on "clearly erroneous transactions."

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Timestamps:
00:00 - 00:57 Introduction
00:57 - 01:46 What Happened to Berkshire Hathaway's Stock?
01:46 - 02:14 Funny Memes
02:14 - 02:45 Would you be allowed to keep shares if you bought?
02:45 - 04:31 Explanation of the Technical Glitch
04:31 - 05:28 Summary

📢 Share your thoughts in the comments! Have you ever experienced a trading glitch? Would you like a video on historical stock market glitches? Let me know!

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ABOUT ME: I've hosted a personal finance TV show on the Oprah Winfrey Network, used to be a stockbroker, went to school to become a racecar driver (failed), founded a fintech company that provides financial planning software to financial advisors who want to help more people who don't have lots of money, and I consult with wealth management companies on commercializing applications of behavioral finance. I'm also quite fond of donuts.

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[PreetBanerjee]

Oof - sorry for the flickering image. I accidentally recorded in a different frame rate that doesn't play nice with the lights. And double sorry if you didn't notice it until I pointed it out.

[kevin-jmqb]

someone made billions on those trades. 15 seconds is an eternity.

[littleninjai]

Well you answered all my questions in this video. Didn't even notice a glitch. Can't wait for the next. Video...not glitch. :)

[aaronhector]

Thanks Preet, great explainer!

PS - do you have a classic red telephone booth in your flat? Amazing.

[Slicknick]

Can you explain the settlement times piece I think many people don’t know that purchasing stock has a settlement time of T+2

[NiklasAndersson]

I guess this is one of the reason we avoid market orders. A video on glitches might be interesting. I understand that this case was a clear technical error, but I guess the famous 2010 'flash crash' was legit, because it was triggered by actual orders, and the trading bots went haywire when the stop-loss orders triggered one another like the 'Kessler Effect'... :-D

[jjvxwkx]

If I buy a few shares at a price of 168, do I still ask to return them?

[Paintotheworld]

46 stocks were sold at 185. Any updates on those

[dianelili]

What happens to people who made money in this situation by trading CFD?

[BenoitStPierre]

If you make a video about historical glitches for fun – I will watch it for fun 😃

[cherylhurst]

Is there a glitch that makes me a millionaire..?

[Teahcbdude]

Ok I have a question about gme shares, since technically none exist.

What is that considered? A glitch? Do those who bought recently actually have these shares?

We all know there's no more gme shares behind the scenes

[novaordemdesantiago]

Basically we can lose everything with a click os a button

[brandonserna]

Cool so you can lose everything but when you finally win they say hey not valid because you won too much too fast....

[ShortBudgetProductions]

How? There are no glitches just revalue.

[lindenmeyer]

It’s about time to turn the stock market into Block Chain transactions…

[MrRellgrant]

Man I got a few of them at 185 and they got reversed 😭