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If I am not mistaken there was a similar incident on Cedar Point's Top Thrill Dragster not long after it opened and a number of folks had injuries, such as lacerations.
"Don't go around saying the world owes you a living. The world owes you nothing. It was here first." -- Mark Twain
This incident was discussed extensively on the amusement safety group. The ride is a cable launched high speed roller coaster. The launch cable failed and either debris or whiplash wire rope caused some major lacerations on the lead car passengers. Besides this version at Knotts', there are similar rides at Great adventure and I believe Hershey and Cedar Point. Given the huge forces involved and the repeated shock loading on the launch cable, this was an accident waiting to happen.
Its not related to the carnival buisness. Its a coaster at a park. But look at the ride, what do you think happened?