short selling is not the problem, page-9

"The retail investor should protect themselves"

How? Stops? What if you decide XYZ inc is fundamentally sound, you buy a heap and leverage your investment with a margin loan. Meanwhile with out your knowledge a Hedge fund has borrows a large parcel from some of the top 20 holders.

They begin dumping, hiting stops, and forcing margin loans to be recalled, perhaps even release commentary saying they are shorting XYZ.

My point being if you are able to borrow enough shares, you can you can drive the price down on any stock.