#1 No explicit short sell price limit
#2 No pre-set expiration on short positions.
#3 Any time someone with USD is unhappy with the current internal market price, they can request settlement at the 99% of feed (a 1% fee) in X days, where X is more than 24 hours.
#4 On settlement day the least collateralized short position is forced to settle at 99% of feed (a 1% profit)
#5 At any time entire market can be settled at the feed price given 30 day notice to be executed only in the event that all USD holders are unwilling to sell anywhere near a fair price. (black swan protection), this settlement can be canceled if the market returns to normal voluntarily.
#6 200% collateral
In effect a short position is a "loan" that is callable based upon price or X day notice.
1) The price feed should be irrelevant unless the current market price is below 99% the expected price feed in X days
2) No shorts would dare sell down the price much below the expected feed for long because longs can force settlement to call their bluff.
3) The market has a graceful escape valve where all parties have ample time to voluntarily settle to avoid being forced settled.
4) Well collateralized shorts never have to cover
5) USD holders are guaranteed liquidity at 99% of the feed within X days (potentially as little as 24 hours).
All that is required is the threat of forced settlement to keep the market fair, by charging a fee for forced settlement longs that demand liquidity compensate the shorts who were forced out. Over all the market rules are simpler, liquidity is much greater, and all parties are far more protected than they are today.