I agree with your story-telling perspective. No one knows "why" the market is down. There may not even be a reason or may be unknowable. All the reason that you should let prices adjust accordingly with minimal intervention because most interventions will have unintended consequences.

Maybe the second part of my sentence about short-selling was a bit of a reach, but short selling does provide downward pressure on prices which would (in theory) more accurately reflect the actual value based on what other market participants are willing to pay for it.

Prices are not arbitrary and are the best way to convey information. Trying to control markets by controlling prices is like trying to control the weather by controlling thermometers.