Short selling is perhaps ok but definitely not naked short selling
A lot hedge funding is just having a big enough pile of cash to bully smaller investors around. In this particular case the hedge fund ran into a much larger pile of cash and got bullied in return and went running home to cry to mommy. Life is tough in the sand box of who's got the bigger pile.
Like shooting isn't a bad or evil thing, per se. But you can break companies or people.