It doesn’t seem like anything unlawful, fraudulent, or even just shady happened here. Where is the threshold where you see the need for regulation superseding t

It doesn’t seem like anything unlawful, fraudulent, or even just shady happened here. Where is the threshold where you see the need for regulation superseding the freedom for people to transact with such risk exposure? Some people may want to pool into something amortizing risk as described but others may want to just reduce their usage. Shouldn’t they be permitted to do so? It’s like how some people may want to hold their savings as cash, some may want to invest in individual stocks, and some may seek mutual funds. The article’s final conclusion, that this episode highlights the necessity of collectivism over individualism, seems like a major logical leap.