So the regulators are now trying to deflect blame

So the regulators are now trying to deflect blame on what surely is coming. The regulators have not only allowed but encouraged abusive naked shorting by looking the other way. No doubt the taxpayer will once again bail out these criminals rather than see them prosecuted along with the regulators who allowed it.

"For example, “positions held by a relatively small group of funds” could constitute “a meaningful share of certain key markets, relative to both market size and trading volume.” This raises the risk that a failure at one fund could drastically drive down the value of other funds’ assets, setting off a chain reaction in which an entire key market is devastated by mass selling.

The other is counterparty risk. Hedge funds that are not themselves significant to the overall operation of the economy nonetheless owe money to larger institutions. A hedge fund failure could end up “transmitting stress to counterparties that are large, highly interconnected financial institutions.”

I'm sure they will claim ignorance of there being any problem. They should be stoned! GO CTIX!!!