"He who sells what isn't hisn, must give it back or Go To Prison!"
One of the core elements of US 5th Amendment rights is protection against unlawful taking. In the case of our regulators, they want to make this right non-existent. Try as they may to use rule making to override law, they can't do it without committing a major felony.
I challenge anyone to show me the law that changes the fundamental right of control of disposition of an asset or its value to unidentifiable third parties. There is no such law, just as no law gives the SEC the right to grant immunity for criminal behavior ex post facto.
Extending this logic a linear level, such conduct as shorting could extend to physical assets including homes. They are damned close to that now. Physical commodities are bought and sold without delivery every day.
I repeat something I have said many times: If you aren't part of the solution, you are part of the problem.
Wake up and smell the Napalm. Do we have to go to 0% of the world's IPO's for anyone to get this?
So much for this rant.