You are correct.

If regulators had stepped in at the $2 plus mark and stopped this artificial value run some people would not have been happy.

They also have the ability to reverse transactions to a specific date .

That process makes everyone whole to a specific trade date,but does place frequent and volume traders in an uncomfortable position as they may need to make arrangements to cover acct. variances on a sale cancellation by the commisioner.

Its a matter of degree as to the harm quotient but IMO if this tool was used more often it would become understood as a part of the market and be woven into the mindset of possible outcomes of volatility in a stock that is paper speculative in nature only.