[RedDevil]

So in the end it weren't the Redditors that put GameStop to its greatest heights. Other hedgefunds like BlackRock broke the pact and joined the frenzy for profit. And stepped out again in time, probably even shorting; cashing billions in a short squeeze turned pump-and-dump.
In the end Wall Street always wins, even if some traders lose.

As for banning naked shorts, that would have negative implications.

A short is nothing more and nothing less than a promise to buy shares at a certain moment in the future. That promise holds a certain value, typically the current value of those shares plus a loan fee. The stock exchange formalizes and executes the promise.

Trading has evolved; traders use options to reduce risk or enhance possible profits as desired. Many strategies need these promises to function properly.

If the exchange would impose blocking restrictions on shorts then the traders would look elsewhere. A grey market that provides the very services the exchange sought to ban would emerge, and this time it would all happen out of sight of the main market.
It would be less convenient, costs and risks may be higher, but it would also be more secretive - right what the shorters want.

A ban on short selling is therefore not a good idea.
But option transactions should at least meet the same scrutiny as share transactions. These products do have a valuation just like shares do, and traders should be held accountable for their actions concerning them just the same.
If I interpret the videos above correctly that isn't the case now, and it must change.