This is the same fallacious argument that media cartels use to claim that copyright infringement "costs" them and incurs "losses". No, this is unrealized revenue, and that's generally not punishable by law; there have to be specific circumstances which would indicate fraudulent behavior.

RH is trying their best to stay afloat and carry out their fiduciary duty, and it seems that the incompetence is not with RH but with the many users who misunderstood how RH works.

(To be clear, we should dismember the entire system of short-selling shares of corporations, for the billions of dollars worth of damages and injuries which are done to the employees of those corporations and the social fabric. But that is not the same as revoking RH's charter.)

If RH is eventually found to have stopped trading on GME in purpose to manipulate the price then sure let the SEC draw and quarter them. But RH wouldn't be so severely punished for having downtime and this is basically that.