I'm not trying to use semantics here.
I'm simply pointing out that longer term traders who tend to use wider stops will have been harmed compared to the contrary. No argument intended, just a discussion.
A valid point, however this never has and doesn't happen due to market sentiment. In simple terms a flash crash is driven from liquidity, or rather a disorderly array of orders which cant be matched. Therefore the top of a daily range, or even weekly range will be buoyant up to and even below the low of the range in question - I hope this makes sense?
Its when price is rapidly pushed outside of the 'liquidity range' [which is equal to the range between the high and low in question + a margin for stops outside of the range] whereby the fall in price accelerates to a point whereby liquidity is thin. This is why when you look at a liquidity report of any flash crash the momentum of the crash [and the likelihood of a stop being honored reduces] is most severe when the low of the range has been broken beyond the point of where the majority of the volume stops are situated. Hence, the place where longer term traders may have there SL because they don't want to be effected by intraday or weekly spikes in price. A logical assumption to make, I would assume.