I think they are usually done via a repurchase agreement.
Let's say I had 1 million shares to lend ( I don't mind you), you buy them off me for $3million . And we have an agreement that at some point in the future you will give me back the shares and I will give you $3million back. So the reversal of the initial trade is done at the same rate.
And for the whole time you have borrowed my shares I charge you interest.
At some point in the future I will get the shares back.
As the original owner I don't care if borrower makes or loses money, I pick up interest on the shares lent.
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