> so you can return the same share N times, distinctness be damned? Yes. At market prices. Another short seller offering $600 for the share you just delivered

> so you can return the same share N times, distinctness be damned? Yes. At market prices. Another short seller offering $600 for the share you just delivered at $550? You don't get that share back to cover your position with. With no float supply on the market and infinite demand, you're stuck handing over ever larger amounts of money to your market maker to buy the same shares over and over again. If they could cover their positions at current market rates, I bet they would. But the second they try, the price shoots up, because of all the HODLers keeping float down.