Just think about what you said for a while. I think that you haven't got the faintest idea of how this works.
You seem to be focusing on the borrower (shorter) and ignoring the lender.
As a lender I have 500,000 $2 shares that I can sell immediately in Jan 2022 for $1m
Alternatively under your impression of how this works. I as a lender can lend them out for a monthly fee and they will be returned to me. So I lend them out at a rate of $100,000 a month that's 10% a month. By Apr 2022 the shares are worth $1 and the shorter returns them to me. I now have $500,000 worth of shares plus $300,000 worth of shorters interest payment, So I am down $200,000.
Those prices actually happened $2 in Jan 2022 and Apr 2022 were worth $1.
What lender would take such a risk.
And in general what idiot shorter would agree to pay 10% per month of the value of the borrowed shares.
It's not how this works. Your impressions are wrong.
For god's sake do some research.
cheers Lies
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