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.