[alpark3]

Most people confuse market making/risk holding with high frequency statistical arbitrage strategies. I'm not totally sure exactly what Knight Capital was running, but generally the only "little" mistakes that would cause HFT market takers such as Jump(for the most part) would blow up is some type of egregious technical error like this, or some type of assumption violations outside of market conditions(legal, structural, etc.). Compare this to market makers like Jane Street who hold market risk in exchange for EV, and thus could lose money just based off of market swings (not to blowup levels if they know what they're doing), and you can see the difference between the styles.

I'm a proponent of both. But generally I hold more respect for actual market makers who hold positions and can warehouse risk.