The townhall piece is a limited hangout coverup. Stock shorting is legal, but it shouldn't be as it is like fractional reserve banking. Banks can end up loan out more money than they really have on deposit, shorting can end up shorting more stock than exists. And you can really screw with shorts by going long.

But this was worse, there's evidence of naking shorts, which is illegal, and will or at least should put folks in jail.

https://redpilled.ca/the-real-reason-wall-street-is-terrified-of-the-gme-situation/