
Board: M.U.G.E.N Development Help
Also, I'm not sure if you guys noticed, but P2 is being flipped and sent downward off screen.

What ever move you do at 0:52 - 0:53 is the issue.
Edit those weird targetbinds and use Debug (ctrl+d) when you record next time. Use F4 to reset the round and watch P2's values also.