True, but unfortunately you'll need the services of an exchange if you want to short. Longing is possible by putting cryptos in a wallet you have the private keys for, but not shorting.

As I think about it, this is actually another benefit of longing over shorting - it allows you to eliminate the risk of putting value on exchanges, at least if you're okay with limiting your ability to quickly react to market action.

Care to post any proof? Bitfinex had the opportunity to close shop after being hacked, yet they chose to pay everyone back.

Not the parent, but the way in which Bitfinex paid everyone back was extremely dodgy[0]. They also decided to help themselves to 15% of everyone's BCH after the August 1 fork[1]. I don't understand why anyone would trust them.

[0]https://medium.com/@bitfinexed/bitfinex-never-repaid-their-t...

[1]https://news.bitcoin.com/bitfinex-bitcoin-cash-deposits-with...