At around 10.00AM of 10th Feb, BTC-e had hit the low level of 102 USD/BTC from 700 USD half hour before.
How is it possible at all? And even after such a big dip, how did the market recover and survive?
It simply is someone with a lot of coins, who sold on the open market and depressed the price (temporarily). It was an economically unwise decision, since they missed out on the fair market value as you saw.
This is one example of how the Powerful Elite can Thwart Cryptocurrencies.
I think it was automated trading bot avalanche.