(Edit: removed mostly wrong info, but here's an article on some stuff that goes on with voting rights and shorts that could potentially be used to vote for a capital raise and break the short squeeze by issuing new shares:
https://www.wsj.com/articles/SB116978080268188623 )
> ... you generate a new fictional long position from the loaned shares which gets additional voting rights without any conservation law.
That’s not how it works. Votes don’t magically appear.
The lender gives their voting rights along with the stock to the short seller. The short seller gives it to whoever purchased the shares from them. So only the final purchaser gets to vote, the original lender lost their rights while their stock is lent out.
I believe this is actually an easy way that a true short squeeze can actually happen.
A bunch of shares are shorted, and the company announces a vote on something, which causes people to recall shares that they've loaned out (because they want the voting rights).
