Hedge fund managers are not necessarily known for their discretion when unhappy, but many have held their tongues (and noses) with regard to the restrictions and bans on short-selling put in place last year.

But now that the U.S. short-sale ban is no more—it lives on in other jurisdictions—apparently without having achieved its end, the industry is taking its shots.

The latest to attack the short-sale scare is EIM chief Arpad Busson, who blasted the moves by regulators in the U.S., U.K., Netherlands and Australia, among other jurisdictions, saying they made the financial crisis worse, not better.

“We’re not in a credit crunch,” Busson told Bloomberg News. “We’re in a credit halt. You take short-sellers out and you take 30% to 40% of the liquidity. It creates a vacuum. They are an essential liquidity provider.”

Particularly hard hit by the bans are convertible arbitrage strategies, and that too has kept companies from raising necessary capital, Busson claims.

“One of the ways that companies finance themselves is through convertible bonds,” he said. “The ban on short-selling has completely stopped the convertibles market.”

Busson said the short bans are not the only problem, arguing that Lehman Brother’s bankruptcy proceedings are keeping “billions and billions” from being injected back into the market.

“Everyone who has a responsibility for market order has a responsibility there,” Busson said. PricewaterhouseCoopers, the accounting firm who is administering the Lehman bankruptcy, “is doing the best they can, but triple the number of bodies, work around the clock.”

PwC has said it will take “several months” to figure out how much Lehman owes its clients, including several high-profile hedge funds.