They clearly did not have the finances available to provide the service they offer. Regardless of whether that was forced on them, the outcome was RH's failures manipulating a market.
RH should be fined and sued out of existence.
I also don't see the value in short selling. Seems like a way to gamble legally in all 50 states.
Of course, it creates a perverse incentive. A short-seller who is invested in a company's failure will spew tons of FUD around the company, whether it's true or not. TSLA used to be one of the most shorted companies on the market, and many bloggers that were highly critical of Tesla were short-sellers, and the noise it created made it difficult to figure out how bad the problems were.
> Seems like a way to gamble legally in all 50 states.
You could say the exact same about long positions, which is nothing more than gambling on the success of a company, the same way a short is a gamble on the failure.
I'm glad we aren't creating SEC rules based off of peoples' feelings.
Even if it wasn't intentional, it was artificial.