Why is short tender illegal?

Banning short tender seems to me to be as dumb as banning other forms of short selling. I just missed out on a huge ATW bond arbitrage opportunity because I couldn't short tender them.

 

Perhaps it provides too much room for an insider trading. Not sure though.

 

One issue is that it leads to gaming in pro-rata tenders where the rational behavior becomes everyone short tendering an infinite amount.

 

So just require a locate...