On May 6, 2010, at 2:45pm the stock market plunged almost 1,000 points in a matter of seconds. It became known as the Flash Crash, and it spooked a lot of retail investors.

Well, fear no more! The evil genius who caused the Flash Crash has been caught and charged with his crime.
For the first time we have a picture of his Evil Hidden Lair. Behold!

I know what you are thinking. That looks like a quiet suburban house in England.
Well, that's because it is.

It seems that the "evil genius" that nearly took down the world's financial system was not wealthy or connected or a computer hacker. Instead he traded from home and lived with his parents.
Instead of looking like an evil genius, he looks a lot more like a patsy.

Traders we spoke with think the arrest of a 36-year-old UK-based trader for his alleged involvement in the 2010 "Flash Crash" is a total joke....
"My gut says he is basically being made a target because they need someone to blame for the 'Flash Crash.' The trader thinks that this "case smells of political PR" and that "someone somewhere is really working hard on their career."
One Midwest-based trader said it was "impossible to have been caused by one trader or even exaggerated." He added, "It's insanely entertaining to think an individual or an entity caused that day."

Michael Lewis, author of Crash Boys, asks several important questions.
For instance, the Flash Crash was five years ago. Why did it take regulators so long to catch?
And since he kept trading after the Flash Crash, why was there no other Flash Crashes since then?
Since regulators have had the information for five years, and decided to sit on it, why now? Why not continue to sit on the information?
And then there is this question:

Then there is the biggest question of all: How can a guy working from his parents’ house in suburban England whose only actionable orders were to BUY stock market futures cause such a sensational collapse in U.S. stocks? On the day of the flash crash, Sarao never actually sold stocks. He was trying to trick the market into falling so that he could buy in more cheaply. But whom did he fool with his trick?

And there you have the crux of the problem. This arrest creates more questions than answers.
In fact, even if you take the regulators' words at face value - that this one guy, trading from his parent's home in the suburbs - it still causes alarm bells.

The arrest of a London trader who allegedly helped cause the 2010 Flash Crash isn't boosting investors' confidence. It's spooking them.
"If this one random guy could impact billions of market value in seconds or milliseconds, what's going on?" billionaire entrepreneur Mark Cuban said in an interview.
"If a guy in his underwear can manipulate markets, anybody can. The optics look really, really bad," said Cuban.

No matter how you slice this, the regulators do not look good and nothing appears to have been fixed.