The kind of wash sale ATO doesn't like is a sale that is made...

The kind of wash sale ATO doesn't like is a sale that is made solely for the purpose of minimising/avoiding tax. Buying the asset back straight after selling for a loss, at virtually the same price, suggests you are not genuinely disposing of the asset (in the ATO's eyes).

I don't think short term traders typically accumulate capital losses significant enough, over a long enough period, to have major tax implication or to stand out as an obvious attempt to avoid tax. But I don't pretend to know the in's and out's of tax law...