I have plenty of issues with short selling, but my way of understanding of why it’s a welcome part of the market is that being able to short sell incentivizes p

I have plenty of issues with short selling, but my way of understanding of why it’s a welcome part of the market is that being able to short sell incentivizes people to find bubbles, half truths, or flat out scams. Once a short seller has found such an opportunity, they’re incentivized to tell the world about it (as they want to maintain the position for a short time as possible). Although many honest people will lose money in such a case, we are better off than when that lie can grow for more time and blow up more spectacularly.