CMKM Diamonds Inc. (fka CMKX)

[Euthydemus]

Even assuming such a situation existed (can you provide an example?), "counterfeiting" is by definition the creation of something for which there is no backing, no obligation to provide real value is accepted by the counterfeiter.

In your example, the shares that were sold without a borrow in excess of the float are still guaranteed by the entity that sold them without a borrow. They are kept track of and the obligation to cover is not "forgotten".

At some point, there is going to be a reckoning and the short will have to be covered. In true counterfeiting, no "cover" ever takes place and the counterfeiter accepts no responsibility for making the counterfeit item good.

No borrowed shares have voting rights; they remain with the owner.