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Re:Naked shorting: The curious incident of the shares that d... by PragmaticPulp on Sunday January 31, 2021 @05:27PM (#25983225)
The linked Wikipedia page has a graphic that explains it better than I can in text: https://en.wikipedia.org/wiki/Short_(finance)

Basically, a short sale is a 3-party transaction. The first person lends their shares to the short seller. The short seller then sells the shares to another buyer. The original owner is still owed 1 share, which the short seller must later buy.

In other words, you can't have a short sale unless someone buys the shares from the short seller. That new purchaser, who has the stock, is long.

The key is that there are 2 people with long interest and 1 person with short interest. The short seller must pay borrow fees to the lender for the privilege of selling the shares short, otherwise there's no reason to do it.

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