They never ever cover until and unless forced to do so and regulators look the other way. The legal short of 1.2 million is but the tip of the iceberg. The interest rate on those borrowing shares must be rising though and imagine how high it will go if some of our whales get angry and demand delivery in certificate form? Those shares at the DTCC that have been borrowed by multiple brokerage firms will be in demand for sure. Now that would be fun.
Go IPIX!!!