I would even argue that you have a point here. But the example is one where centralization through exchanges is the actual problem, not decentralization. Maybe find another example?

Completely agree. This is the story of one exchange. Having more exchanges helps the goal.

I'd rather say that at least the main issue of the author - that Bitfinex are abusing their position - would not be an issue with decentralized exchanges.

Everything gets gamed. You game a centralized system with regulatory capture or control of it's information sources.

All financial systems are a Red Queen's race.

Decentralisation isn't the problem here though.

I'm glad we could get federal regulators and banks out of financial markets so that scammers can manipulate markets and build Ponzi schemes in peace.

I would agree if the existing regulators were doing a decent job of avoiding major anti-consumer blowups. But they really aren't.

"They" aren't because the "players" give them very lucrative jobs when "they" quit their govt jobs. Its the classic you rub my back and I rub yours.

Then the issue is no regulation not decentralisation.