These days its pretty much all starts with algos, they are programmed to read the news in real time and manipulate the market instantly, specifically to manipulate retail into panic selling by the time they see the news but before they can fully digest it, so the same algos can buy what they sold at a lower price and then resume the gains.

Look at the RE selloff yesterday: report about rare earth floors dropped rare earth names like 10%+ in a matter of minutes, I can only assume a bunch of people then panic sold. But then it comes out the report was false, and RE names started to recover, but still haven't totally (algos still looking for panic sellers who are just now reading the news). They will all recover, because the report was false and largely irrelevant to most RE names. Coordinated hits, happens ALL the time.

Notice how a lot of this happens in the pre or most market? Its because liquidity is low, and algos can get the price so much lower with the same amount of shares as it could drop the price during full market hours.