Short squeeze party thread, page-230

This shorting position is confusing.I now believe that full title passes from the Lender to the Borrower.
The Borrower pays a fee and needs to 'give back' the shares according to the agreement.And I see nothing which requires the Borrower to sell immediately.
I suppose they can hang onto the shares to cause fear amongst the normal retail holders.

I need someone who is a holder and who has run a publicly listed company to help out here.

This is a case-Beconwood v ANZ- that is helpful in setting out the structure.
https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2008/594.htmlThis is para 25 & 26:

1. Clause 3.4 provides: “Notwithstanding the use of expressions such as “borrow”, “lend”, “Collateral”, “Margin”, “redeliver”, etc., which are used to reflect terminology used in the market for transactions of the kind provided for in this Agreement, all right title and interest in and to Securities “borrowed” or “lent” and “Collateral” which one Party transfers to the other in accordance with this Agreement will pass absolutely from one Party to the other free and clear of any liens, claims, charges or encumbrances or any other interest of the Transferring Party or of any third party (other than a lien routinely imposed on all securities in a relevant clearance system) without the transferor retaining any interest or right to the transferred property, the Party obtaining such title being obliged only to redeliver Equivalent Securities or Equivalent Collateral, as the case may be. Each Transfer under this Agreement must be made so as to constitute or result in a valid and legally effective transfer of the Transferring Party’s legal and beneficial title to the recipient.” Clause 3.4 is buttressed by the warranty of the Lender (ie Beconwood) in cl 9(c) that it is “absolutely entitled to pass full legal and beneficial ownership of all Securities” to the Borrower (ie OPS) free from “all liens, charges, equities and encumbrances.”
2. Clause 4.1 also picks up the obligation to pay a fee. It provides that if in respect of a loan of securities the Collateral is cash, the Collateral Taker must pay “a fee ... in respect of the amount of that Collateral, calculated at the rate initially as agreed” and “the Client must pay a fee to Opes Prime for each loan of Securities” in an amount agreed.

An example of the standard Lending agreement is online.