"in specie" in this Blackrock case pertains to the actual internal transfer of shares between their funds. A few funds might be the buyer then they transfer/distribute the registered shares to the other various funds. Now, as far as your comment re shorting: in a nutshell, yes, the owner of the shares can lend them to other parties to sell (short selling) - this might be the case with some of these funds or it might not.
Ann: December 2016 Quarterly Activities Report, page-46
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