ASIC banned short selling during the GFC. It was open...

ASIC banned short selling during the GFC. It was open recognition that shorters have the potential to move the market and not in a good way, and their statement said this when they lifted the ban:


"In reaching this view, however, ASIC notes that the global financial crisis and global recession continues to place pressure on Australia's markets. ASIC will not hesitate to reimpose the ban immediately (using its enhanced and clarified powers under the Corporations (Amendment) Short Selling Act 2008) and without consultation if it considers market conditions warrant such action. ASIC will, in its monitoring of the market along with ASX, pay particular attention to short selling activity by participants (including activity by hedge funds and similar institutions) which could potentially harm Australia's financial system."

I'm not as accepting or philosophical about the human desire to profit in any way possible through manipulation. ASIC also acknowledged this by stating that it could potentially harm Australia's financial system. I have no doubt that shorters would have brought down companies that were hard hit by the GFC for their own profit, which is what ASIC meant by harming Australia's financial system.