A very complicated issue here. On the one hand you have free markets and free people that should be able to do what they please with their money. On the other, they shouldn’t be allowed to manipulate anything, and without regulation, how can you be sure they aren’t. Are the markets really free if they are being manipulated by a handful of big players?
No easy answer here. Although, the benefits currently outweigh the risks and problems.
Hopefully, in the future we will have hedge fund like products that are regulated and open to the average investor. No reason why the big boys have all the fun.