GME - hold the line
(media.greatawakening.win)
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The only backstop in this case for the lender (who is getting paid significant interest for the duration) to a short seller is to force the immediate replacement of those shares at market price. If the short-seller/borrower cannot afford to replace the shares when called to do so, it's ultimately the share lenders who are on the hook for the remainder of the loss (through simply not having those share able to be returned/replaced).
https://www.investopedia.com/ask/answers/05/shortsaleclosed.asp
Of course, when short interest exceeds 100% (which I thought was illegal, but hey, what's that matter anymore, and I heard that the short interest on GME was 150% of the float!)... well, then I have no idea who's on the hook next.
But no way, no how, should it ever be taxpayers.
I agree it should never be the taxpayers but we both know that we have funded Wall Street bailouts multiple times during our lifetimes alone!