Eh, there are ways around the lack of shares being publicly available to cover the short. Stock loan agreements and triparty agreements are two ways. Granted, t

Eh, there are ways around the lack of shares being publicly available to cover the short. Stock loan agreements and triparty agreements are two ways. Granted, this is OTC and you have to have willing participants, but it is possible. I used to work in back office IT for a hedge fund and had to manually set these up in our systems all the time. Currently work for a Mutual Fund. Dont think current employer engages in this.