Character rig acting stupid. Help?
So I made a character for a project I'm working on, and the original version rigged okay. However, after redrawing a less detailed version of the character, the rig is completely going off the rails. It makes zero sense. The rig literally results in the separation of the character's torso from the rest of his body, and all the lines distort, it looks like it's warping through time and space or something. 
Again, I've rigged things before, I just don't understand what is causing this problem. Can anyone figure this out?
I'm attaching the .fla file to this message so you can see what's going on for yourself and try to figure it out. Please note that I do not intend for this character to be used anywhere else other than my own work, so don't steal. Please. 
MANY THANKS!
This is what the character looks like before trying to rig it:
This is what happens when I add a rig and attempt to move it (I'm just trying to move his lower left arm):
And it doesn't put it back into place if I hit Undo, I have to completely delete the rig in order to put it back to normal.
FLA file
AdChoices