Attempting to ban or otherwise regulate recursive borrowing, as some have suggested, is a poor solution to this problem. In general, regulations make such things worse, rather than better. Well-capitalised professionals are often placed at an even better advantage than if no regulations existed at all. Banning recursive borrowing can easily be sidestepped by professionals using smart contracts by routing borrowing through multiple Ethereum address, for example. In any case, recursive borrowing is a legitimate strategy many users employ whilst setting up a leveraged long/short postion.