SkyNet Is Now Cannibalizing Itself: BATS IPO Flash Crashes

Tyler Durden's picture


Presented with little comment - except the irony is simply too much to bear as BATS crashes from $15.75 to $0.038 in minutes...perhaps reflecting the WSJ article on HFT abuse and that BATS is being investigated for HFT abuse (ahem) on the day it goes public. We note that there were some trades executed at $0.00! The reason for the crash apparently is because BATS stock is ony trading on the BATS exchange, where apparently the APPL halt second before also happened. Pretty much tells us all we need to know about the stability of broken market structure. In other news, the stock, and exchange, have now been renamed BATShit - perhaps the VVIX can trade there next or something... And they wonder why nobody trades this farce of a market any more.

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Fri, 03/23/2012 - 11:25 | 2283545 stickyfingers
stickyfingers's picture

Margin of safety

Fri, 03/23/2012 - 11:29 | 2283565 HedgeAccordingly
HedgeAccordingly's picture

perfect because bats has had quote issues for two weeks now -

Fri, 03/23/2012 - 11:40 | 2283610 vast-dom
vast-dom's picture

BATS making billions on that $0.00000000 to $0.000000000000001 manipulated trade. If this is viable biz model then we all deserve the great crash more at apocalypse.

Fri, 03/23/2012 - 11:39 | 2283638 johnQpublic
johnQpublic's picture

glad i sold my shares at 0.00 before they went negative

Fri, 03/23/2012 - 12:19 | 2283896 skistroni
skistroni's picture

Oh, no. I put a bid at -0.02 for 1,000,000 shares and it was not hit. Would have netted me 20K. 

Fri, 03/23/2012 - 22:39 | 2285856 Likstane
Likstane's picture

After the gap up from .001415 to .00149, I knew my put options for nov2013 were toast.

Fri, 03/23/2012 - 19:55 | 2285589 Buck Johnson
Buck Johnson's picture

It's getting funnier and funnier, BATS is done.

Fri, 03/23/2012 - 11:41 | 2283649 I should be working
I should be working's picture

zero is a pretty good margin of safety

Fri, 03/23/2012 - 12:21 | 2283908 William113
William113's picture


Fri, 03/23/2012 - 11:25 | 2283548 slaughterer
slaughterer's picture


Fri, 03/23/2012 - 11:32 | 2283549 TruthInSunshine
TruthInSunshine's picture

Skynet needs to be medicated (benzodiazepines & lithium).


I am sure that retail investors are becoming more comfortable with the notion of 'equity markets' as a stable, fair & non-corrupted (rather than galactically & massively rigged) avenue of asset class investment to help preserve and grow one's wealth. /s

Fri, 03/23/2012 - 11:27 | 2283550 Cdad
Cdad's picture

Lol...low print on BATS is $.0002.  High print after $16$15.75.  Oh...and 1.257 million shares traded.

Nice broken market.  Way to go Wall Street!

Fri, 03/23/2012 - 11:29 | 2283570 Cdad
Cdad's picture

I guess this is what folks get for getting in on the IPO...or getting long flash crashers.  Quick, on with BlowHorn [CNBC] programing that has nothing to do with anything.

Fri, 03/23/2012 - 11:32 | 2283575 Cdad
Cdad's picture

This is fucking hysterical!  Watching the book on it, it is utterly broken.  Can't seem to clear that ASK at 13 cents.

Confidence inspiring!

Fri, 03/23/2012 - 11:36 | 2283614 Cdad
Cdad's picture

LOL!  Turned on the BlowHorn radio stream just in time to hear Bob Pisani say, "This is just a liquidity problem."  LOOOOOOOOOOOOL!  HOOOOOTINANY!!

Yeah, that's right...liquidity.  Plenty now though, at 13 cents.  All fixed.

Good grief!

Time for a market holiday?

Fri, 03/23/2012 - 11:42 | 2283654 Hippocratic Oaf
Hippocratic Oaf's picture

Cdad.....the name is Bob Pissonme. And don't you forget it.

Fri, 03/23/2012 - 11:40 | 2283623 TruthInSunshine
TruthInSunshine's picture

No one need fret.

The Wall Street Pond Scum Journal is on top of the story (with perhaps the most understated title of the year):


BATS Swings Lower At IPO Open

Fri, 03/23/2012 - 11:46 | 2283683 SheepDog-One
SheepDog-One's picture

Dont worry! We've got The Bernank out telling school kids how kewl the FED is, as the last resort to anyone who might still believe him!


Fri, 03/23/2012 - 11:26 | 2283552 TheCanimal
TheCanimal's picture

I show only 100 shares traded @ .0384.  No further trades yet.

Fri, 03/23/2012 - 11:43 | 2283664 Hippocratic Oaf
Hippocratic Oaf's picture

1.2M at the halt

Fri, 03/23/2012 - 11:27 | 2283554 Sutton
Sutton's picture

The Detroitization of markets  grows apace.


Fri, 03/23/2012 - 11:52 | 2283708 Melin
Melin's picture

+1 for the use of "apace."

By "Detroitization" do you mean that the "helping hands" of the do-gooders are crushing the markets as just as they did Detroit?

Fri, 03/23/2012 - 11:27 | 2283555 LongSoupLine
LongSoupLine's picture




"Holy SkyNet BATSman!! - Robin

Fri, 03/23/2012 - 11:27 | 2283556 Lost Wages
Lost Wages's picture

The computers know what this market is worth: $0. The computers are smarter than the economists!

Fri, 03/23/2012 - 11:27 | 2283558 dwdollar
dwdollar's picture

Fat finger warfare?

Fri, 03/23/2012 - 11:28 | 2283559 spekulatn
spekulatn's picture

Buy with both barrels, bitchez.

Fri, 03/23/2012 - 11:28 | 2283560 Death and Gravity
Death and Gravity's picture

BATS? Batshit?

Fri, 03/23/2012 - 11:28 | 2283563 The Axe
The Axe's picture

I had a bid in at  at .03876    wtf     i want a fill lol  

Fri, 03/23/2012 - 11:39 | 2283637 disabledvet
disabledvet's picture

That's what I was thinking. "it ain't broken unless they break my trade.". And lest we forget this happened to Exxon/Mobil as well. Anywho..."the structure is fine...but the architecture is all wrong." For example i prefer my gargoyles on the ledge myself...not inside the building flying around again.

Fri, 03/23/2012 - 11:29 | 2283564 Dr. Engali
Dr. Engali's picture

That's a clear sign of a deep and liquid market no?

Fri, 03/23/2012 - 11:30 | 2283573 Schmuck Raker
Schmuck Raker's picture

I'm running low on derisive, cynical jokes today. TGIF

Fri, 03/23/2012 - 14:10 | 2284378 prains
prains's picture

your plunge protection has kicked in

Fri, 03/23/2012 - 11:30 | 2283577 LongSoupLine
LongSoupLine's picture



Note how the "market" ramping hard (gaps up) on these bad trades hitting.


Now, if there were "real people" in the market, tell me what would be happening...

Fri, 03/23/2012 - 11:30 | 2283578 AGuy
AGuy's picture

Could BATS and AAPL be linked. They both experienced a sudden drop at the same time. Or very close to the same time.

Interesting way to manipulate the market:

1. Buy a small amount of shares, perhaps a few thousand

2. Short the same stock

3. Sell off the shares at a steeply discounted prices. Make several trades with with the steeply discounted price

4. cover your shorts.

Lose Money on the shares you sold, but make money on the shorts.



Fri, 03/23/2012 - 14:26 | 2284442 Matt
Matt's picture

Yes, like BATS admitted, they had a technical problem involving ticker symbols between A and BF. If only there was a way to know which range of letters will be affected next ...


EDIT: Its Sasame Street Markets; today's crash is brought to you by the Letter A, the Letter B, and the Number 0.

Fri, 03/23/2012 - 11:31 | 2283579 Global Hunter
Global Hunter's picture

just cancel all the trades below 15.74 and call a do over.  Golfers call it a mulligan i think.

Fri, 03/23/2012 - 11:34 | 2283611 Dr. Engali
Dr. Engali's picture

As an avid golfer I pefer to call it cheating.

Fri, 03/23/2012 - 11:37 | 2283621 Global Hunter
Global Hunter's picture

thank you for clearing that up, while I"m not a golfer I can understand the concept of cheating.  Simple really.

Fri, 03/23/2012 - 12:05 | 2283804 TruthInSunshine
TruthInSunshine's picture

In 'the markets,' the Mulligan only cancels the losing side of the trade, bitchez.

Fri, 03/23/2012 - 11:41 | 2283653 SheepDog-One
SheepDog-One's picture


Fri, 03/23/2012 - 11:30 | 2283580 Dapper Dan
Dapper Dan's picture

I thought you said cannibisize, if that was the case then super size me ;]

Fri, 03/23/2012 - 11:31 | 2283581 Al Huxley
Al Huxley's picture

This is one efficient market - TVIX yesterday, AAPL 'fat fingered' flash crash, now this.  Really inspires confidence in the general fairness of the markets.  Honestly, I trust carnis running games on the midway more than the fuckers behind these markets.

Fri, 03/23/2012 - 11:43 | 2283663 SheepDog-One
SheepDog-One's picture

Even shifty carnies know you must let the rubes win once in a while or they go away.

Fri, 03/23/2012 - 12:26 | 2283926 memyselfiu
memyselfiu's picture

Can I use that? That's spectacular

Fri, 03/23/2012 - 12:31 | 2283945 brooklynlou
brooklynlou's picture

Dear Goldman employee. Please desist from referring to Goldman Sachs clients as "rubes". The correct and approved term is "muppets". See memo 032112-0235 for instructions and examples of use.

Fri, 03/23/2012 - 11:31 | 2283586 youngman
youngman's picture

But zero is probably a good price for this exchange....

Fri, 03/23/2012 - 11:31 | 2283587 I am a Man I am...
I am a Man I am Forty's picture

fucking fidelity, when I put an order in on the ask at 0.0488 i expect you to do your job and fill it

Fri, 03/23/2012 - 11:31 | 2283589 jus_lite_reading
jus_lite_reading's picture

As any smart investor can see, this shows the safest place to store your retirement money is in the ponzi stock markets which ARE REAL money... unlike that yellow disgusting metal that is only a tradition and can not be used to buy iPads

Fri, 03/23/2012 - 11:34 | 2283605 slaughterer
slaughterer's picture

MDB, is that YOU?

Fri, 03/23/2012 - 11:31 | 2283590 Comay Mierda
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