Selling borrowed stock (short selling) doesn't artificially increase the no of shares sold because they are actual shares being sold. Yes, they do have to be bought back at some point down the track but that's not new revelation...
Market would be totally broken if anyone other than the company can randomly and artificially create new shares on issue. Then the equity value of each individual share would become random based on how many "artificial shares" are being created at any given point in time.
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