Repasting the comment I left in youtube:
There are three things that attributed to this flash crash:
- That massive order
- Folks who have set stop loss price for such low values
- Folks who decided to keep "more than what they can afford to loose" ETH in an online exchange.
Setting some sort of "circuit breaker" should be made a prerequisite, before any exchange can call themselves "The Most Trusted Digital Asset Exchange" in their homepage! Reg. the folks who bought ETH at 10 cents, I think that would be the traders close to the exchange or exchange employees themselves who would have been able to take advantage of this situation. External network access to this site would have nearly been cut-off!
A more thorough investigation is in order. And it should definitely be done by a third-party, not the exchange themselves!!