[ by Melanie Gretchen ] Nasdaq hit Facebook where it hurts, sending the company's IPO for a loop with technology problems that affected trading in millions of shares, the stock market said on Sunday.  Facebook activiely considered listing on the NYSE before settling on Nasdaq.  [CI Note: Is Facebook sorry now?]  The trading glitches, in addition to underwhelming investor appetite for Facebook shares on Friday, cast further doubt about Wall Street's ability to handle hot IPOs. What Happened. Despite extensive testing before the deal went through, the problem was a malfunction in the trading-system's design for processing order cancellations, according to Nasdaq OMX Group Chief Executive Robert Greifeld.  "This was not our finest hour," he said. As it fixed the glitch, Nasdaq delayed the start of trading by 30 minutes on Friday, after which more than 200 million shares changed hands in the first hour of trading in the first hour of trading, and more than 570 million during a day that traders say was marked by unease and confusion.  Throughout the day, the deal's underwriters, including lead underwriter Morgan Stanley, worked to keep the stock from slipping below its $38 offering price. The Extent of Damage. At the close, shares closed just 23¢ higher, "far short of the kind of first-day pop that signals a healthy offering," according to WSJ's Jenny Strasburg, Jacob Bunge, and Gina Chon.  As a result of Friday's technical problems, investors large and small saw orders processed improperly, if at all.  Some say they lost money and want compensation from Nasdaq.  [CI Note: Can you blame them?] In response, Eric Noll, Nasdaq's executive vice president for transaction services, said the company is "rebuilding the entire book" to decide who should be compensated due to Nasdaq's system errors, though Nasdaq's plan to repay investors would require approval of the SEC, exchange executives said.  In addition, the company has plans to redesign its IPO systems. Track Record. Despite the glitches, Mr. Greifeld called the offering, which raised some $16 billion, "very successful."  Nevertheless, the incident marks the second technical blunder on a recent public offering – BATS Global Markets, which botched its IPO on its own exchange in March, blamed a software glitch – bringing into question how Wall Street delivers on raising capital for young companies. David Weild IV, a former Nasdaq vice chairman and now an adviser on market structure and stock offerings at Grant Thornton LLP, said the problem is the trading system itself: "These markets are so fast, and they have so much scale.  You turn it over to machines at light speed, and nobody can react.  This isn't good for trust." For further details, go to [WSJ, 5/21/12].