Time will tell whether the warnings were not heeded due to negligence or due to the sellers not accepting the advice of strangers.
The rule that will apply (IMO) is this one (particularly "A"):
203(a)
iii. If, prior to any loan or arrangement to loan any security for delivery, or failure to deliver, a national securities exchange, in the case of a sale effected thereon, or a national securities association, in the case of a sale not effected on an exchange, finds:
A. That such sale resulted from a mistake made in good faith;
B. That due diligence was used to ascertain that the circumstances specified in §242.200(g) existed; and
C. Either that the condition of the market at the time the mistake was discovered was such that undue hardship would result from covering the transaction by a "purchase for cash" or that the mistake was made by the seller's broker and the sale was at a permissible price under any applicable short sale price test.
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