I think they are valid market participants, everyone is, if it led to more accurate price discovery of the current value of the assets due to the redemption mechanism of the ETF. For example, the decline in the value of shares of both the ETF and underlying companies occurred far after these short sells hit the market, and after that panic induced selling, this short position still had to close out by purchasing shares back, reaching an equilibrium in price sentiment better than the panicking investors could.

The capital controls are the only distortion in the market and they don't even work. It is very simple for a foundation or trust to open the same brokerage accounts anybody else here uses, and just wastes everyone's time trying to sniff out sanctioned entities.