As well, you can tell a broker that you do not want your stocks lent out.
Not only do investors not receive a fee they are not even consulted as to when the scam occurs. Short selling does nothing positive for the market but does do great damage to the investors (as opposed to the speculators and market manipulators). This is why it is forbidden in the German stock market.
Speculators can use options to bet against a stock. If you believe a stock is overvalued then buy puts or sell calls.
The mechanism of shorting essentially artificially inflates the supply of stock put on the market hence it biases the price downward. It increases the risk of owning stock particularly for newer and thinly traded stocks hence it damages those companies in many ways since they are easily attacked by these predators. No good comes to investors (as opposed to speculators) from allowing short selling of stocks.
All stocks bought on margin are subject to being taken and loaned out. Nothing an investor says about it would change that.
I have heard the “market efficiency” argument for decades but it is all baloney. To me short selling is capitalistic cannibalism and hurts capital accumulation hence it raises prices across the board.