Yeah. Doesn't make any sense for the lender to report because the borrower may not immediately short sell the borrowed stocks, if at all. Say X lends stocks for company A to Y, and a day later, there is a unconditional cash takeover bid for company A, Y may just choose not to short sell the borrowed stock at all and simply return them to X. Hence the onus to report short sell has to be on the short seller.
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