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Money Stuff doesn't say it'll be the end of direct listings, but they do say that section 10 is much harder to sue under and therefore removing section 11 limits the company's liability a lot. It doesn't seem that far fetched to go from there to "so investors will avoid the risk".

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But it's still the same risk of normal everyday trading of shares.

So it does seem pretty far-fetched to me. If you followed that logic, the entire stock market would grind to a halt.

It's not quite the same, because with other stocks you have months or years of past performance to go on.

But it also seems likely that companies will decide to take advantage of the reduced liability (especially now it's confirmed and not just theorized) and investors will just price in the risk difference.

In such a situation, honest companies will get hurt and dishonest companies will get helped. How is this good for the ecosystem? Reminds me of crypto ICOs.

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