I think this sort of covers the "how" of a stock being shorted over 100%. Just add "rinse and repeat" alot.
Stock GME has 100 shares outstanding. Broker A is long 100 shares. Broker B borrows 100 shares from Broker A and sells short to Broker C. Broker B borrows another 100 shares from Broker C and sells short to Broker D. There are now 200 shares sold short on 100 shares outstanding.
Not sure if this was just meant to be tongue and cheek but that is not what happens. A broker can't lend it's shares if they are already borrowed against. To clear up confusion these companies do not have a higher short interest than their total shares, the short interest is against their float.
- 1