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cwhiz on Jan 27, 2021 | parent | context | favorite | on: GameStop Is Rage Against the Financial Machine

How can you get to a point where 140% of the shares are shorted without naked shorts?

TheCoelacanth on Jan 27, 2021 [–]

A owns 1 share (the only share in existence for simplicity) and lends it to B.

B short sells to C.

C lends 1 share to D.

D short sells.

200% of outstanding shares are shorted.

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