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A comment on Shorting and Indian capital markets. Parent comment

Re:Shorting and Indian capital markets by midasuni on Friday January 29, 2021 @08:00AM (#25956779)
So if two people owned one share, they could simply pass it between each other until their shorts are covered?
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Re:Shorting and Indian capital markets by treis on Friday January 29, 2021 @10:39AM (#25958341)
Not exactly, but yes. A single share can theoretically unwind all of these short positions. If we have

A lends to B who sells to C who lends to D who sells to E who lends to F who sells to G.

The reverse of the process will unwind it:

G sells to F who returns to E who sells to D who returns to C who sells to B who returns to A

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Re:Shorting and Indian capital markets by bluGill on Friday January 29, 2021 @10:51AM (#25958532)
It doesn't even have to be reverse. It can be G sells to C who sells to F->A->E->B->D just to make up a random order.
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Re:Shorting and Indian capital markets by ScoutOrgo on Friday January 29, 2021 @08:18AM (#25956937)
Not passed, but bought since the underlying price will have changed.
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