And the entity that bought it from the short seller can lend it to someone else, leading to two short shares, etc...
Also, there is a difference between 100% of the stock and 100% of the float. Because in theory the institutions holding could alter their positions or lend their shares as well.
How is it called, when the person you lend your stock to, lend it to someone else, who lends it again to you and you lend it to the first person again?
Madness?
(Anyway, my actual knowledge of the stock market is limited, but is my scenario a realistic one?)
Also, there is a difference between 100% of the stock and 100% of the float. Because in theory the institutions holding could alter their positions or lend their shares as well.