Okay, for anyone who agrees with you on this the price of shares are predominantly decided by irrational investors.
And in a market where price of shares are predominantly decided by irrational investors, none of your purported benefits apply.
That's the point. Short selling acts as a tax on irrational investors. That's why short selling is linked to a reduction in speculative[1], corporate fraud[2], and price inefficiency[3]. It makes the market more rational, by driving irrational investors out of the market.
