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by beagle3 5060 days ago
That's not what happened, according to nanex.

It just kept making markets in reverse (instead of joining the bid and the offer, it bid on the offer and offered on the bid).

Nanex speculates that Knight ran their tester software on the real market (the tester losing money on purpose to the main algorithm). Alternatively, it could simply be a bug that sends a bid instead of an offer and vice versa. One bit flip at the wrong place could cause that.