Please watch the clip, then give me your thoughts.
http://xboxclips.com/SneerfulWater57/6d04b386-a0fe-42b6-8dd3-3a6da5badbf4/embed
Simply put, I thought this was impossible. Not only the bit about my opponent popping instinct, but then getting a Shadow Emergence to come out as well. We already had the Rash thing, I’m hoping this is nothing…
I would test this…but there’s no power in my neighborhood currently. 
Apparently the other player has seen that before. After an ultra starts, I don’t press anything, I just let depression consume my soul . Sometimes I have the feeling that everything in this game works against Kim Wu even the glitches.
I actually think that it had more to do with bad roll back than anything else. I’ve had wacky stuff like that happen.
It probably needs more testing to know for sure though.
Its most possibly this, or the fact that the side switch grab may not have enough hitstun to keep the opponent in Ultra?
Technically once the Ultra starts the opponent loses all options to fight back. In short, once the Ultra begins the match is over. Chances are, unless this glitch can be duplicated, the other opponent had something different happening on their screen.
I’ve seen various weird situations like this happen. Once me and @MaruMDQ were fighting and the roll back was insanely bad. I would start a combo and then get randomly Shadow Eclipsed or Shadow Countered while IN combo. Thankfully things like that don’t happen too often though.
What on Earth was that?! 
He probably tried to early break whatever was coming after the grab/throw ,the ultra wasn’t registered yet.
I can’t test it right now,I hope it’s nothing else but lag/rollback.
Ok, checked it with my boyfriend. Looks like it’s broken.
Before the ultra connects it seems there’s a frame/s that allows you to do “something” (Instinct in this case?) Not easy to get though.
Tested it in Steam (don’t know how to record it) training mode, no lag issues.
Test with Fulgore:
Well now… that is sad. 
For Kim Wu that is…
…
fml
…
And the bad part about it is, Fulgore knocked her OUT of the ultra. It’s not even like with the Rash glitch (thus far) where you were at worst stuck blocking a ton of invincible attacks…
Thank you Maru for looking into this.
No problem 
The credits for labbing go to my boyfriend. He used to play with Kim too.
He saw me yesterday trying this in the lab and asked me why so I showed him your video. I was doubting if it’s was rollback or a bug, he instantly said “it’s a bug” and gave me a hand with the recording (I wasn’t getting it right).
He tried other characters than Fulgore as well. The good part is that the ultra will kill characters trying to run away from it (eg:Kan Ra Sand explosión after Instinct) unles they use an invincible shadow that can knock Kim out of the ultra. And she may not be the only one to have this happen in her animation? 
I hope developers give this a look and fix it, because it’s really not fun u.u
Unless we are playing KI2 and we can have our ultras broken 
Honestly, not cool/fair (IMO) some characters can put you in a situation you can not get away (Sako,Ra) with simple grabs/not breakable setups that lead to easy ultras, but then you can get knocked out when doing a normal opener ultra with Kim
You guys really wanna know how not fun this is?
I’ve labbed this some more. Dragon Grasp opener into ultra seems to have some sort of clear cut gap in frames before the first hit of the ultra (her overhead) will hit you. Enough so you can perform any of the following actions…
There’s actually enough of a gap that if you are on the receiving end of the ultra, you can mash jab and the ultra will activate off of a counter hit. That should not be possible since once you hit Dragon Grasp, and committed to whatever (manual, linker, shadow linker, double, ultra) afterwards in the proper amount of time, you’re in the combo system. The only escape past that is a breaker.
In short? Dragon Grasp into Ultra (opener > ultra) is not real.
At first, i was content to let this lie as a kinda quirky bug that i’ll have to live with playing Kim Wu. Now? This feels like a legit way to rob someone of a sure-kill. I am so salty right now…
can you imagine if someone could make a full comeback from that? man, its gonna get patched but it would be cool
If someone got cheated out of a win because a glitch like that, all I would feel is frustration. There is no reason for any character to have their “finishing” move not actually finish the opponent.
It just happened to me a week or so ago. I posted in the bug thread. My Eyedol got ultra broken during his ultra roar animation.
Take away one bug and two bugs take its place…damn KI I love you but come on.
I’ve seen the one Seraphs posted in the bug thread. The difference between that instance and this instance (even though the same end result is pretty much happening) is that in Seraphs case, he seemed to do opener > double > ultra and his opponent interrupted with a combo breaker. Now, whether he broke the double and the game didn’t catch up in time before the animation for ultra started OR whether he truly broke the ultra is up for debate. I know there are instances where opponent’s have broken doubles, started a shadow linker which freezes the screen, and as soon as the screen is released, the combo is broken from the double that came first. I don’t know Eyedol enough to comment more than what i know of how the game has treated a similar situation; could very well be a Eyedol thing. I will say that the breaker strength that the game showed being broken was medium, which was the double used before the ultra. In any other case in the game when you break an opener > ender, it reads as heavy, which is why i kinda wonder about that one.
In the case in this thread, an opponent is able to interrupt a combo sequence without a breaker. That’s what’s so vexing to me about this; if i as the Kim Wu player, hit you with an opener (Dragon Grasp) and go straight to ultra, that should be the end of it. The opposing player should not be able to both evade the combo system all together as well as interrupt or evade a sure-kill move. For instance, Thunder is able to pop his instinct and just dash around the screen evading Kim as she auto pilots through the ultra. However, Kim will ‘zip’ to his location in certain intervals but unless she tags him again, he can dodge a sure-kill move.
Just like with Rash, i’m preparing to accept this as one of those things i’ll have to deal with not getting patched out. But it still sucks to have an entire way of ending the match be voided.
Does this happen with Thunder’s back throw?
Not to my knowledge. I thought about his back throw as having the same kind of potential as Kim Wu’s since it works like hers but i tested it to see if ultra would activate off of a counter hit but it looks tight.