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Computer Error Sends Stocks Soaring

Several telecom stocks went nuts this morning, bolstered by nothing in particular, or so it seemed.

Shares of Finisar Corp. (Nasdaq: FNSR) quickly shot up 56 percent to $2.10 while sprinting past its average trading volume of 1.5 million shares.

Meanwhile, Avanex Corp. (Nasdaq: AVNX) and Vitesse Semiconductor Corp. (Nasdaq: VTSS) climbed 20 percent on unusually large volumes, too.

Was it insider trading? Merger talks? Elvis/UFO manipulation?

The truth is out there, but it's less exciting than an X-Files episode. The online news service tracked the share surges to a computerized trading glitch at one large (and unnamed) firm. An early morning glitch in a software program that tracks the Russell 2000 Index of small-cap stocks touched off some frenzied buying.

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