Sounds a bit like Wall Street, but is that so bad? And how could we, the market participants, do something? It shouldn't really matter if they have the bitcoin at hand. And hear me out here. In the futures market not every security is backed by the underlying stock or commodity. It is just assumed that if need be the orders can be fulfilled. If the exchange is "selling coins they didn't have" that just means they have assessed the risks of doing so. It's simply working the leverage of your money. Not saying its right or wrong, but it should make you think about why you hold your cryptos in an exchange... They wouldn't be able to do anything of this nature if everyone took their cryptos in their own hands.
That is pretty similar to my thoughts as well. It almost sounds like it could be normal market making activity. We won't really know for sure until the authorities release a statement on their findings.
Yea, I think that the market is so young that the average person blows news like this out of proportion. Companies like apple or the NYSE or any other big company get sued regularly. This shouldn't be as big of a problem as it has become