“Shorting is taking capital out of the markets...”
No it doesn’t. Please explain.
A short puts money into the pocket of the trader. That is trading, not investing. Investing is putting capital (i.e., cash) into a business for the purpose of that cash being used to buy equipment, personnel, etc., to further the profits of the business. That is investing. Stock trading, exspecially shorting, is nothing more than gambling and trying to suck more out of the market than has been put in.