Knight Capital trading failure (2012)
Knight Capital deployed new trading software but left old code running on one of eight servers. When markets opened on August 1, the firm sent millions of erroneous orders. It lost about $440 million in roughly 45 minutes.
Knight's stock collapsed, and the firm was acquired by Getco the next year.
The Securities and Exchange Commission fined Knight $12 million and regulators tightened rules for automated trading systems.
Paige automates production changes rather than trades, but the failure mode is the same: software acting at machine speed needs limits before it acts.
