[itchyouch]

Actually, the news prior to the IPO about FB's advertising not being quite as effective made people lose a lot of confidence in FB and want to pull out.

This exposed a race condition within the IPO process that bungled it up. The post mortem talks about "order modifications" which are actually order cancels right up to the point of the cross was supposed to take place.

http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2012-20

Pricing the IPO lower would have had people not feeling that the IPO was overpriced. The overpriced feeling people got caused them to want to tap out and brought out the particular race condition that Nasdaq hit. Normally, IPOs get lots of buying interest. The all-in, then folding behavior was unprecedented as people who didn't believe in the company IPO would never have put in bids in the first place.

[whatok]

How are you tying efficacy of advertising with busted exchange? I don't see it.

This deal was upsized very close to the IPO date and completely oversubscribed with huge retail interest. Everyone wanted this deal to succeed and news behind it was extremely positive. Don't see how random chatter about advertising causes a stock exchange to blow up.

To piggyback on the weird comparisons, why didn't Square encounter any issues on their IPO? News was extremely negative and it was said that they were forced to IPO to cash out investors.