[javitury]

Price is a function of supply and demand. Shorting 140% of the stock increases supply by 140% and demand by 140%. It looks balanced, but there is an asymmetry in terms of pressure to close positions.

Those shorting shares have to pay interest, place collateral if price goes up and need to buy back those shares regardless of market price. The ones holding shares don't have that pressure and their losses are bounded.

If options are used, the effect depends on how the price of the underlying moves. Generally they just have a multiplicative effect, the losing side has to increase collateral.

A particularity of shorted calls is that losses are unbounded.