When the uptick rule was in effect previously it did not appy to ETFs. So unless they amend what was used last time it is not an issue. It is amazing that people do not know this.
Okay, so you're simply saying that the volatile moves downward in the market as a whole will be "dampened" due to this rule change. As a consequence, the leveraged Short ETFs will be impacted regardless of their success in accurately reflecting such moves on the backend.