I'm not sure about that.
Just because an entity 'borrows' the share does not mean they have to sell them.
I understood they can sit on them or just sell a portion.They simply have to pay the fee to the entity from which they borrow the shares.
The reason they appear as a short position is because the 'lending' entity have to register that 'short' transaction
If I'm wrong please let me know the reason why.
Australian article re Hancock, page-154
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