A multi-wavelength approach to classifying transient events in the direction of M31

(abridged) In the hunt for rare time-domain events, confusing exotic extragalactic phenomena with more common Galactic foreground events is an important consideration. We show how observations from multiple wavebands, in this case optical and X-ray observations, can be used to facilitate the distinction between the two. We discovered an extremely bright and rapid transient event in optical observations of M31 with the intermediate Palomar Transient Factory (iPTF). The persistent optical counterpart of this transient was previously thought to be a variable star in M31 without any dramatic flux excursions. The iPTF event initially appeared to be an extraordinarily rapid and energetic extragalactic transient, a very fast nova in M31 being one of the exciting possibilities, with a ~3mag positive flux excursion in less than a kilosecond. The nature of the source was resolved with the help of Chandra archival data, where we found an X-ray counterpart and obtained its X-ray spectrum. We find the X-ray spectrum of the quiescent emission can be described by a model of optically thin plasma emission with a temperature of ~7MK, typical for coronal emission from an active star. The combination of the X-ray luminosity, calculated assuming the source is located in M31 (~3.10^36 erg/s), and the color temperature exclude any type of known accreting compact object or active star in M31. We argue instead that the optical transient source is an M type main-sequence, active star located in the disk of the Milky Way at a distance of ~0.5-1 kpc. Its persistent X-ray luminosity is in the ~(1.3-5).10^30 erg/s range and it has the absolute optical magnitude of 9.5-11.0 mag in R-band. The observed optical flare has the equivalent duration of ~95min and total energy of ~(0.3-1).10^35 erg in R-band, which places it among the brightest flares ever observed from an M-type star.