They undoubtedly do to an extent, but the exchanges use price limits, trading halts, and mandatory nonstop human supervision to keep things under control and al

They undoubtedly do to an extent, but the exchanges use price limits, trading halts, and mandatory nonstop human supervision to keep things under control and allow human operators time to kill errant systems that are losing money. Trading firms and clearing firms require additional safeguards to limit instability and losses. Also, if some group of trading systems does go wheels-off in a positive feedback loop, there's likely to be another, larger group of trading systems operating correctly and taking the other side to eventually stabilize prices.