Theoretically you can short infinitely.
You let me borrow your shares and I pay you some interest, I then let my friend borrow my share and he pays me interest, he then let's his wife's boyfriend borrow his shares and pays him interest.
It's not meant to be this extensive, I don't even think it's ethical, but as of current it's technically legal. The SEC in America has done nothing about it so far and no mention of stopping this on any of their media - I don't think ASX is any better but it hasn't become a problem yet here.
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