I believe the large number of people using LLMs are capable of noticing when there is a hole in the market that is actively being used to steal people's retirement money.

This announcement smacks of a fear trade to dissuade a lot of people from looking closer at things they shouldn't be looking closely at.

Backtest Gamestop and FRC. You'll notice two different inconsistencies with the options, and market makers actions/reactions even before the first breaking news that FRC was in trouble, or the fake news where people posted edited video claiming a bank run was in progress (on a Sunday, where the FRC sign was reversed in the wrong direction for a glass reflection relative to the position the shot was being taken from). Lets definitely get real here.

What happens when you create a lot of additional counterfeit shares in a market where the number of buyers or sellers on the ticker decides price action (up or down)... It goes down.

Ask yourself how holding/writing options works when a company goes into receivership, and how it differs when you are a market maker instead of a individual. Do you really believe there is no preferential treatment where the entity deciding has a conflict of interest (because its on the hook if the market maker is on the hook). How is that not jumping on the bandwagon of potential price manipulation to bankrupt a company (any company)?

Obviously do your own due dilligence. When they say its done on a case-by-case basis, and they have a vested interest in the outcome; shady stuff rarely ever gets punished; its how corruption and fraud work.