strange thing

#!/bin/bash

[[ -d xyz ]] && rm -rf xyz
mkdir -p xyz/foo

res=0
failed=0
ls -d xyz/* | while read d ; do
  echo "d=$d"
  if [[ -f "xyz/$d/notexisting" ]] ; then
    echo "OK"
  else
    res=1
    failed=1
    echo "Failed"
    exit 1
    echo "Still alive?"
  fi
done

echo "res=$res failed=$failed"

rm -rf xyz

exit $res