The enigmatic flaring activity of AE Aqr, which extends from the radio to the X-ray bands, may be the exotic outcome of a relatively feeble accretion flow onto the rapidly spinning white dwarf. We summarize and interpret the results of recent observations by HST and ROSAT of the aperiodic flares. Optical and UV flares are tightly correlated and are clearly involved in powering the emission lines. The spectrum of a flare consists of a Balmer continuum, and a plethora of emission lines, which vary synchronously. The large optical/UV flares are not accompanied by large X-ray outbursts. The radial velocity curves of the UV lines, and of Hα, suggest that they originate in the accretion stream. The observational results dis-favor scenarios invoking coronal activity on the secondary star or instabilities at the disk/magnetosphere interface. Rather, they support a recently proposed scenario in which the accretion flow consists of blobs which are shocked upon encountering the white dwarf magnetosphere.