By now, most everyone is familiar with the story of Knight Capital Group. Basically, an algo went bonkers, a bunch of stocks got roiled at the open, and Knight lost $440 million. Over the weekend, Knight found a white knight to infuse it with capital in a highly dilutive convertible preferred sale.
Today, TheTradersWire.com, in conjunction with Nanex, posted a great piece on exactly what happened on that fateful morning. As you read the Traderswire post, do yourself a favor and click through to the Nanex link. As usual, Nanex provides pictures of the mess that are worth a thousand words. Or $440 million.