So what? In general retail investors who take concentrated positions in individual stocks are fools playing with fire. They're going to eventually take a huge loss regardless of the specific cause.
I guess I just see things differently. This isn't about being properly diversified, this is about the integrity of our markets and trust. I mean if the idea is that it's a free for all then why have securities laws at all? The US markets have been viewed as a haven of trust and stability. Garbage like this only serves to undermine that trust.