Yes, this happens a lot. And in many cases companies don't even know this is happening.
Collateralized Debt Obligations frequently contain pieces of the same financial products, where it is not obvious what the underlying asset is.
It gets complicated to explain, but I can make an analogy to a portfolio of stocks you might create. Your portfolio contains companies and those companies also own some of the other companies in your same portfolio. The value of all the companies in your portfolio are very interrelated even though you thought you made diversified investments, under the idea that they can't all do poorly at the exact same time. Except they can, if the value of the company's shares are solely based on the value of other company's shares, but nobody noticed that none of them have an actual robust operations.
This was a key factor of the financial disaster around 2008, but this problem was solved with the addition of additional disclaimers that all investors agree to, so they know what they are buying