Coincidentally, abuse on the CME is one mechanism that makes it possible. Chicago. Where corruption apparently knows no bounds.
I commented and posted several articles on the predatory shortselling and its destructive potential. Also here and here
Unfortunately, instead of paying attention to the destructive potential of the tactic and what to do about it, the discussion often goes off track into topics like "banning" or "CEO greed and mismanagement" and "deserving it" etc. This was just one of the issues that I felt Chris Cox at SEC should have been paying much closer attention to and more involved with, but he handled it abysmally. IMO, he was ineffective and seemed out of his depth in that position, and Bush's economic team from the beginning was not impressive.
Granted, to foresee an attack on the entire industry (or the system), especially vulnerable due to necessary (by its business structure) leverage and lack of liquidity to survive "run on the bank" redemptions may not have been easy, but that extraordinary massive "overinsurance" should have been a tip-off that consequences may be more than ordinary.