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1) How can one “short” a stock when short-selling is banned?

In September 2008 (during the financial crisis), SEC took an “emergency action” and temporarily banned investors from short-selling 799 financial companies. However, many investors found ways around the ban and “short” the stocks. How did these investors get around the short-sale ban?

2) How does the options trading circumvent Red SHO requirements? Please provide examples to explain.