If you bought BTC at $1200, then that was your choice. It is your problem. It isn't the market's problem.
If you don't mind exchanges allowing other people to sell your bitcoins, then good for you. I suspect others would be concerned.
First you say the market makers get to sell their bitcoins instead of the someone on the exchange and now are saying the exchange would sell your bitcoins. You seem confused.
The fact is short selling isn't anything new and it is a normal part of most markets. Just because you don't understand how it works, doesn't make it a scam. If you short sell something you have to cover it at some point and it can be highly risky for the short seller.