I've heard that every available share in brokerage accounts across the various custodians is available to be shorted and that this process is managed by a separate institution that keeps track of the shares.
" Available" meaning not locked up in a sell order - which goes back to the theory of all shareholders putting in sell orders at a limit price.
The only advantage I see of this massive shorting is if you're assuming a penny stock company will go out of business, and in this analogy if it did then the short never has to be covered - correct?
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