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In response to
"this is a reddit post from 4 days ago on the subject (no idea if accurate, but appears to make sense)"
by
Beaker
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another thing I found, ties into the greed mentioned in the above post
Posted by
Beaker (aka Anniebecca)
Jan 28 '21, 04:32
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Sure, or 200% or 1,000%.
Suppose a company has 100 million shares outstanding, and 60 million of them are with institutions that participate in stock lending programs, making the shares easy for broker to locate.
Shorts borrow the 60 million shares and sell them. Suppose 40 million of the sold shares end up with institutions that participate in stock lending programs. Shorts borrow those and sell them again. And again. And again.
As a practical matter, you rarely see short interest anywhere near 100%, much less over it. But it does happen. One famous example was the 3Com/Palm spin off in March 2000, the last gasp of the Internet bubble.
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