Think about how a prime broker generates a 'locate' for a short seller:
>They don't lock a specific serialized certificate
>They point to aggregate street-name inventory held at DTC / omnibus brokers as 'reasonable grounds to believe' the share can be borrowed
>Meanwhile CFD/IOU platforms like CFD apps like eToro internalize retail buys off-exchange so the lit bid never moves
Every time an investor pulls 100 shares out of street name into Computershare (DRS Book), or withdraws 42,000 $$DOGE into a cold wallet, the fractional-reserve locate multiplier shrinks.
It's literally fractional-reserve banking applied to stocks and crypto.
AuxPoWMiner!wJS5W.LJ | ID: 75a1b8cf | No. 1908 | 2026-05-03 10:33:12Routing through IEX on Interactive Brokers (IBKR) + DRS Book is the one-two punch that breaks internalization.
NoMoreIOUs!.881jHlO | ID: dad49442 | No. 1909 | 2026-05-03 13:46:50