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That's the thesis, but it doesn't really hold.

>“Some commentators have asked how short interest can get as high as it did in GameStop. Short interest can exceed 100%—as it did with GME—when the same shares are lent multiple times by successive purchasers. If someone purchases a stock from a short seller and subsequently lends the stock out again, it will appear as if the stock was sold short twice for the purpose of the short interest calculation.”

https://www.bloomberg.com/opinion/articles/2021-10-19/matt-l...




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