how can it go up, page-8

pejudi

Someone else did explain this [but I can not remember who].
It is a loophole in the law. The lender [supposedly] can not [for certain] know the use the shares might be put to.... i.e. a broker might need to borrow shares to cover a transaction where the counter party has not fulfilled their side of the trade .. or [another i.e.] a borrower might, in turn, lend to a third party etc. The original owner has no control and can not be certain about the ultimate use of the shares. This 'complication' is avoided if the lender is not required to report. It is a pretty weak excuse for a loophole IMO ... but there it is.