Naked short selling ought to be illegal. Naked short selling has been used to destroy companies when traders borrow, buy, and sell stocks that they don’t own and may not even exist.
This fine is just another innoculation... so they can say “that’s old news”. Naked shorting is terribly destructive and should be heavily fined maybe 100% of the gross value of the shares sold,, not by the person placing the sell order but the house that allows it to go through..