published by NYRB Classic
Fleeing from Johnny Law, a fugitive finds himself on a mysterious deserted island with ghost-like inhabitants. If you don't want to know what's really going on, stop reading right now. Ok. I warned you. These ghostly inhabitants turn out to be a kind of "projection", produced by a machine, invented by a man named, you guessed it, Morel. This machine recorded these actual people some time ago on this island, kind of capturing their souls, to be played on a loop for, theoretically, eternity, thereby making these group of friends immortal.
All the while, before this whole machine projection plot is revealed, our narrator and fugitive has fallen in love with one of the projections! Short story short, the fugitive manages to manipulate the machine enough so as he is recorded into the loop, giving the appearance that him and his new love are in fact, in love. So now he can and her can live together forever, in a manufactured reality.
Borges seems to think this is the perfect story, though him and Casares were like bff, so you can't really trust that opinion. Regardless, it was a great story, if not a little confusing towards the end. An existential-science-fiction type love story thing. Also, apparently, it was very important to the screenwriters of LOST during the fourth season. At least that's what a Google Image search of "the invention of morel" revealed: