I had something like that today with Sub-Zero's first fatality.
It was on the golden desert stage. I performed his first fatality and Sub-Zero stayed where he was and the other character (Baraka) apeared like he should have. Then Sub-Zero shot his freeze blast and Baraka froze. Sub walked foward (nowhere near Baraka) and started grabbing in the air. Baraka's head started to move and all of a sudden Sub had Baraka's head in his hand. Then Sub threw the head, which totally missed, and Baraka's body didn't shatter and just kept standing there frozen.
The game didn't freeze though.

speaking of golden desert.. once i upercutted someone off of the top to the lower level.. but they landed inside of the room that you can see in the side of the mountain.. so i got to fight inside of there.. it was actually pretty awesome.. i cant get it to work again however

that happened to me too, but with kabal's second fatality, he kicked the air, then the other character just jumped up, then he sliced the air and the other character just broke in half lol, I think that happens when you do the fatalitys on the corner, that happened to me in the golden desert lower level, the other that happened to me was kensh's second, he threw his sword, but he missed, but suddenly he pulls the sword out of nowhere, then the sword appears on his hand again, then he slices the air, and the other character just brakes in half lolol, it's funny to watch though...

I also did one with other people. Sindel swings her weapon and body parts appear from nowhere flying in bits.
I did barakas, he slices air and then pulled the stomach from nowhere.
SubZeros looked like it was about to work but then sub walked THROUGH baraka, ripped his head off from the air, walked back and he threw the head at baraka - the smash flakes went everywhere then the headless body just stood there frozen and the camera zoomed to subz shoulder.
Bo rai chos is also weird, they appear far away and then he does his fatality and the flame shoots all the way to the middle of the arena to get the person, it fills most of the screenup.
Li meis worked properly.. apart from the camera staying and both people appear far away.
Only scorpions has froze so far. I havnt tried his second.
What was the inside of the room thing like???

i really wish i took a pic.. it was really neat.. if this happens again.. ill be posting pics

What is a proper room with good looking walls and stuff? Maybe theres an unlockable bit???