Wasn’t there a famous broker that also had a bug in their software and it ended up losing them hundreds of millions over a few hours of trading which put them under? I can’t remember any more details than that, anyone knows what I’m talking about?
Knight's clients remained whole from that debacle because they were capitalized enough to absorb the losses, and if I remember correctly another broker stepped in to take on their clients as well. Knight was also not really servicing retail clients.