Lindsay Meeks Comment On Regulatory Notice 21-19
My concern with shorting a stock is the impact that action has on the company. By shorting 100% of a company's stock (or more!), the stock may drop to a low enough price that the company can't survive regardless of the underlying value. I would suggest a cap on the percentage of a company's outstanding shares that can be shorted, say 60%. This would allow the investor the ability to short while not driving the company out of business by doing so.