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http://snk.wikia.com/wiki/SNK_Boss_Syndrome

SNK Boss Syndrome is an unofficial term to describe the infamously high difficulty of SNK fighting game bosses.

Traits

The syndrome manifests by an overall weakness that is made up for by unfair advantages. There are several recognizable traits that can be linked to a small number of core symptoms typically stemming from poor programming.

Arbitrary advantages over playable characters in the game

attacks with unreasonable damage, priority, speed, range or recovery
greater defense than average
immunity to chip damage
unavoidable moves that hit the player regardless of their position, and can only be blocked

Disregard for established gameplay rules

no dizzy state when featured in the game
infinite or costless super special moves
unblockable moves

Absence of reaction time, command input and "human error"

ability to read the inputs of a human player and/or appropriately reacting to the player's inputs at the same time as (or even before) the player's own character does
inhuman consistency in achieving maneuvers that require precise timing or difficult commands
never falling for a command counter unless initiated during the start up of the boss's attack
ability to follow up every hit with a combo on reaction regardless of the frame window of the first hit
ability to execute special and super special moves without inputting a command
ability to do so on reaction
ability to counter a fast attack with a faster super move on reaction

This syndrome is often looked down upon as a lazy way of adding difficulty, by putting unfair disadvantages in the way of the player instead of taking the time to design a genuinely challenging AI. SNK bosses typically suffer from various programming flaws as well, leading to exploits and patterns that are most often the easiest way to defeat a boss.

Although named after SNK, the syndrome can be found in many other fighting games, and is not exclusive to bosses; higher difficulty settings are likely to have the AI engage in some degree of this behavior

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http://www.giantbomb.com/snk-boss-syndrome/3015-2788/

Defeating a boss with the syndrome

Even though bosses with SNK Boss Syndrome may seem impossible, there are indeed ways to beat them. However, there are generally only two ways to accomplish this:

Bait an incorrect reaction from the AI. As mentioned above, bosses react to the player's input, but it is impossible to program a proper reaction to every move in the game. Therefore, it is the player's job to find an attack that causes the AI to react incorrectly, and spam that attack. Often times, this solution is absurdly simple.
Time Over. If you have dealt a sufficient amount of damage, perhaps the smartest thing to do is turtle until the round is over. However, most bosses are programmed to anticipate this strategy, and will resort to throws if neccesary.