The simpler alternative to this is the much vilified and misunderstand system of “naked shorting”. Basically it would allow credit worthy institutions to meet

The simpler alternative to this is the much vilified and misunderstand system of “naked shorting”. Basically it would allow credit worthy institutions to meet demand by creating synthetic shares out of thin air. As long as they pay all the associated dividends and maintain enough capital to buy back the shares. That would remove the entire long and convoluted process of locating borrow, and remove much of the market disruptions associated with “short squeezes”