NorthWest Biotherapeutics Inc (NWBO)

[CherryTree1]

No one went to jail biosect.
Have we ever seen anything like that from the SEC - HaHa.
The most they ever get is a slap on the wrist.
Knight almost went bankrupt but other marketmakers came to their rescue like we saw more recently with Gamestop.
. . . but with $440 million in losses through they did eventually cave and resurfaced as a different Knight company.
Jun 05 2019
Labels: Case Studies, Project Failure
Case Study 4: The $440 Million Software Error at Knight Capital
https://www.henricodolfing.com/2019/06/project-failure-case-study-knight-capital.html

Here is an excerpt that talks about how the software can manipulate the stock price lowering it or raising it.

SMARS was able to execute thousands of orders per second and could compare prices between dozens of different trading venues within fractions of a second.

A core feature of SMARS is to receive orders from other upstream components in Knight’s trading platform (“parent” orders) and then, as needed based on the available liquidity and price, sends one or more representative (“child”) orders to downstream, external venues for execution.

Power Peg

The new RLP code in SMARS replaced some unused code in the relevant portion of the order router; the old code previously had been used for an order algorithm called “Power Peg,” which Knight had stopped using since 2003. Power Peg was a test program that bought high and sold low; it was specifically designed to move stock prices higher and lower in order to verify the behavior of its other proprietary trading algorithms in a controlled environment. It was not to be used in the live, production environment.