Capitalism working as intended

Company is stupid enough to bet its future on untested software. Company duly loses its entire market cap by buying high and selling low. Company, no doubt, gets bought out for peanuts and asset-stripped in short order.

Surely this is how things are supposed to work? According to CNN, it's the harbinger of doom:

At best, what we are getting in return is a market that is less stable. At worst, we are getting a system that is picking our pockets.
Sure, if by "our pockets" you mean "the pockets of Knight Capital Group's shareholders". And if so, they should consider this consequence a lesson in uneducated investment...

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