I know @marki99 disagrees, and perhaps others do too, but I don't agree there are any 'systemic' risks here at all. The effect of leverage is to place incrementally more risk on stakeholders in the case of a value drop, and the degree of leverage here is pretty small anyway, even if the cap were substantially raised. They might lose out to additional dilution if the price drops, but that's more of the same (price goes down, you lose, price goes up, you win). If you don't like that sort of risk, you probably shouldn't be holding a highly speculative asset. But that's not systemic, it is just winners (new buyers who get in a lower price) and losers (existing holders who lose value and are also diluted). And anyone who is concerned about it can hold some cash to top their stake up if the price does drop a lot.

The system gains (i.e. stakeholders gain) from the independent demand for the HBD product (even if it isn't absurdly pumped but merely reasonably demanded for holding or transacting, but certainly more so when it is absurdly pumped), which is more than ample compensation for either the risk of dilution or the need to hold some cash to hedge the dilution if you are so inclined.