Much better example! I don't think shorting can ever be regulated properly. You give people an incentive like that and they'll try every way possible to kill starting companies and even not so small companies. That's why I think it should be banned. The economy can't get off the ground. Big shorting hedge funds are off shore and a lot that money stays out of US economy.  Shorting is hurting innovation. Many companies go private to protect against shorters.