In light of Meta crash, how does the new price get decided so quickly

First, just wanted to clarify that this post isn't about why Meta crashed. Rather the question is that how does a large crash in terms of dollars ($200B) get decided in a matter of minutes.

I don't think retail can play such a big role. So that leaves it to institutions. How do they converge upon the new price so quickly? Given the short time window I believe it must be based on some formula or algorithm. But what make's it tricky is that the eps wasn't that bad. The bad news was more subjective about long term growth but there was no number to it. So how do you quantify it for an algorithm? How come all players come to the same equilibrium? Given the large amount, the losses incurred are also non trivial even for large players.


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