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 25,000 $$DOGE into a cold wallet, the fractional-reserve locate multiplier shrinks.
It's literally fractional-reserve banking applied to stocks and crypto.
ShibaNode!kUH1xndX | ID: 7a38e5e5 | No. 1248 | 2025-12-02 14:57:56Routing through IEX on IBKR routed via IEX + DRS Book is the one-two punch that breaks internalization.
OrderFlowBot!QJR69yES | ID: fbec300f | No. 1249 | 2025-12-02 18:03:56