This seems to be exactly the point! For 8 years they left unused code in place, seemingly only bothering to remove it because they wanted to repurpose a flag. If they'd done the right thing 8 years prior and removed code they weren't using, this story plays out very differently. No ancient routines get resurrected, no rogue server.
Maybe Knight Capital wasn't using version control and held onto this code "just in case", but I've seen this same resistance to deleting code in programmers working in repos that are completely under VCS, and it's flabbergasting. If you need it again, you can always bring it back from version control. If you need it again but forget it's there, you'd do the same with the dead code path. Leaving it in the source tree is pure liability.
EDIT: Kevlin Henney gave an excellent talk at GOTO about software reliability and he touches on this, using Knight Capital as the example—he actually cites this very blog post [0]. The whole talk is excellent, but I've linked the three minutes where he talks about Knight Capital.
> The problem is there is no code that is truly dead. It turns out all you need to do is make a small assumption, a change of an assumption and then suddenly it's no longer dead, it's zombie code. It has come back to life and the zombie apocalypse costs money.