These insto,s are lending out shares that are owned by their investors (customers) so it's the investors money that is being wiped out, lend oit shares to short then shares are return with a cost but that cost doesn't equal to the value lost in the share, it would be better if the investor sold the shares and got the value of the share ie about 30c. now they have lost all that value and own shares worth 3c, this all should be illegal as it is manipulation. no difference when you have a group of investors who chat on a forum or Facebook and say lets all short this stock by selling all at once then we can by back in. that is illegal. so why lending investors who could be made up of over 1,000 be lending their share to short.
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