From NASA:
Scientists have solved a 35-year-old mystery of the origin of powerful, split-second flashes of light called short gamma-ray bursts. These flashes, brighter than a billion suns yet lasting only a few milliseconds, have been simply too fast to catch… until now.
If you guessed that a black hole is involved, you are at least half right. Short gamma-ray bursts arise from collisions between a black hole and a neutron star or between two neutron stars. In the first scenario, the black hole gulps down the neutron star and grows bigger. In the second scenario, the two neutron stars create a black hole.
More here.