phillip thomas explains all, page-82

Its ironic that various people have been complaining for weeks about the securities lending racket and short selling by hedge funds, but when it blows up, it is not the people lending shares FROM Opes which caused the trouble, its the people lending shares TO Opes ( the so-called margin loan clients ) who get screwed over.
The fact that this can happen goes to show that the foreign shorters have more influence over the major banks and regulatory institutions than the local longs who are actually the ones providing risk capital to developing industries.