roh,I have no idea how the shorted shares issue is resolved.I...

roh,

I have no idea how the shorted shares issue is resolved.

I can only surmise that they pay a lease rate, and whatever they sold them for they still hold, so I assume the original holder expects the mess to be solved with a cash payment of the same value as if and at the time the shorted shares were deemed to have been returned. i.e not return of shares just cash

I'd love it if there was a clause that specified that if at the time the loaned shares were to be returned by the shorter the price was less than the price when the loan was made, it could be at the shorter's discretion" ...BUT...it would be awesome if the next bit was, "..but if at the time of the proposed return the sp was higher than at the time of the original loan, then the timing of the return was at the discretion of the original holder".

Geez, that would be sweet. Irony..just love it.