I don't think that's anywhere close to being accurate. When selling weeks, they did not sell more weeks than the resorts actually had.
For the Abound (formerly Destination Club) trust, when selling points, all of those points are backed by actual weeks that were transferred into the trust. The problem is that many of the weeks in the trust are ones that nobody wants to book. So the points backed by those lower tier weeks are competing with everyone else for the better stays in Abound, whether they are trust weeks or owner-elected weeks.
It's the same problem with floating season weeks. Let's say MVC sold a season as 5 weeks (say, all 4 weeks in February and the first week of March) and the resort has 10 units, all the same size/value. So they sold 50 floating weeks, ostensibly all with the same value. Now, let's say that for some reason, everyone really wants to stay at this fictional resort the first week of February, and wants to avoid the later weeks, especially closer to that first week of March. Maybe the first week of February has some awesome annual festival that people like to attend, but by March the place is a ghost town due to seasonal rains starting to make the place muddy. So you've got 50 weeks owners all (or mostly) trying to book the 10 stays available the first week of February. The first ten owners to reserve will be happy, at least for that particular year. Some of the rest might eventually give in and book the second or third week of February, but everyone is trying to avoid the fourth week of February and especially the first week of March. The ones who only have those as their choices feel like their purchase was worthless. But MVC didn't sell more product than they can provide. It's just that most people don't really want parts of the product they actually bought. In their mind, they all somehow think they bought just the first week of February.