If we're going to right the ship in turn of common sense a bunch of people need to lose a bunch of money, I just hope it doesn't mostly hit passive investors and instead lands mostly on Elon-stans.
Passive "investors" can go and invest in ETF or whatever else that does not include company shares without voting rights.
Really, it's kind of all meaningless BS, but as long as most people believe it isn't then it's a great way to grow assets by doing nothing which is an activity that we apparently want to encourage?
From the regulators’ perspective: it is a risk, but you disclosed that risk in the prospectus that buyers are assumed to have read (what percentage ever actually do?), hence it is fine
Well, when you buy into an IPO, they make you sign to say you read it. So either you did, or you made a false statement on a legal document
If you have this much wealth in something as unpredictable as the stock market I think the very wise move is to start converting it into stock backed loans[1] that you leverage to buy real assets - buy islands and small countries, buy other successful large companies and just let them keep trending slowly upwards, pick up that New Zealand bunker... just try and get your money diversified and into things that would survive a stock price collapse. Even if Elon did this with 1% or 10% of his wealth and kept the vast majority of his assets invested in this one clump of companies and they went to zero he'd still be sitting on an insane pile of cash.
1. Lets all pour out a drink to the bankers who authorize such insane loan agreements.