This is just my wild thoughts, maybe off topic a bit but just a...

This is just my wild thoughts, maybe off topic a bit but just a thought -
maybe there should be some insurance cover for the ' loss of capital ' things like that, as there are many different types of insurance like travel insurance; health insurance ; loss of income insurance etc why not something like ' loss of capital insurance ' to cover for the lost of invested capital -
Let say you pay a small premium to cover in the event of losses, let say 50% loss to the capital within a certain period of time, it then triggers an insurance payout, if not , the insurance company keeps your premium and that would be earnings for them

Insurance business is a big business gambling on a risk taken and many big ends of town (IMO) are also involved in insurance business as well, so that way they would be more careful in short selling a stock as they would also lose out when their insurance business/investment triggers a payout.

That would be a win win situation for the small investors

This is just a thought that's all, ignore my post if you don't like it