DD Support Board and Research Team

[microcapbiotech]

Hello, Can I please get opinions on the following two links about short selling and naked short selling.
https://finance.yahoo.com/news/end-naked-short-selling-230100677.html
"The ability to sell an unlimited number of non-existent shares in a publicly-traded company gives a short seller the ultimate power: To destroy and manipulate a company’s share price at will."
"Following the 2008/2009 financial crisis, naked short selling was classified as illegal in the United States, though that labeling has done nothing to thwart this lucrative game."
and also:
https://www.sec.gov/news/press-release/2023-221
The SEC's New Rules on Short Selling Oct. 13, 2023
"The Securities and Exchange Commission (SEC) approved the adoption of a new regulation called Rule 13f-2. This rule is designed to enhance transparency for investors and other market participants by making short sale-related data more accessible to the public.
This rule mandates that large investment firms must report information regarding their short positions and trading activities for stocks. Historically, these firms reported only their long positions."

I ask because some seem to believe that it is a BIG problem and others think it is not a problem at all.
I just assume that the SEC would not adopt a new rule if there was not a problem to begin with.
Also why would a NYC Judge rule that institutions were liable for losses due to naked short selling if there was not a problem to start with?
Thank You in advance.