No they are returning the borrowed shares. in the case of pcfg, the borrower hopes to never return the shares
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver
Investopedia explains 'Short (or Short Position)' 1. For example, an investor who borrows shares of stock from a broker and sells them on the open market is said to have a short position in the stock. The investor must eventually return the borrowed stock by buying it back from the open market. If the stock falls in price, the investor buys it for less than he or she sold it, thus making a profit.
When you cover a naked short position, the transaction is complete. you hope to have made a profit, but in the end you own 0 shares
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