The rise of short video platforms has fundamentally altered the balance between freedom of expression and copyright protection, challenging traditional legal frameworks like the Safe Harbor Principle. This paper critically examines the evolving legal landscape, with particular focus on the implications of Article 17 of the EU’s Copyright Directive in the Digital Single Market (DSM Directive), especially for small platforms, creators, and users. Through comparative analysis of international legal frameworks and case studies, the study delves into the challenges faced by stakeholders in navigating platform liability, algorithmic content moderation, and user rights. The research highlights how the existing legal environment, while aiming to protect copyright holders, often disproportionately favors large platforms, undermining the expressive freedoms and fair use rights of smaller creators and users. Furthermore, the paper addresses the role of remix culture on short video platforms, discussing how transformative works and user-generated content foster cultural diversity and innovation. It advocates for reforms that balance copyright enforcement with freedom of expression, promoting cooperative licensing models, nuanced content moderation, and expanded fair use exemptions to support a more equitable digital ecosystem where creativity, access, and protection coexist effectively.