Other mistake: When Shao Kahn rips M. Bison in half, M. Bison's hand is ripped apart too... and then stays attached to his body somehow.
Continuity mistake: After the Hadouken-spear struggle, Scorpion teleports behind Ryu and sucker-punches him in the head, which sends Ryu just a couple of steps forward. After Scorpion takes his sword, Ryu has suddenly teleported further away, requiring Scorpion to charge at him to reach him.