SNK's hand-drawn 2D fighter The King of Fighters XII hasn't only suffered from lag issues, but also buggy glitch issues as well.
This clip is of fighter Raiden and glitching it up at around the 1:10 mark while doing a Critical Counter combo. To be fair, this is the PS3 version, which has gotten patched, which hopefully fixes this problem (and other problems as well).
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The Xbox 360 version still has yet to be patched.