Nothing unlawful, fraudulent, nor shady happened here. But something very risky happened, and the people on the downside of that risk are not in good positions

Nothing unlawful, fraudulent, nor shady happened here. But something very risky happened, and the people on the downside of that risk are not in good positions to weather the downside. Whether that is deserving of regulation is a separate issue, but people set themselves up for a disaster on the basis that the downside would not hit them. Pow! Now they are in a world of hurt.