fridays foibles, page-28

There's no ban on short selling. Only a requirement that shorts have to deliver by the agreed settlement date (actually this requirement has always been around but penalties have been raised and will be enforced). What this means is that shorts won't be able to sell shares short that don't actually exist.

There have been incidences of more shares being short sold than actually have been issued by the company. That's a ridiculous situation and plainly not a stabilizing or balancing force but a momentum force multiplier. Quite different from shorting in a normal market using shares that actually exist.