how is 8765h INC 1 negative? I know its negative because the answer says sign flag=1 but how?

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how is 8765h INC 1 negative? I know its negative because the answer says sign flag=1 but how?

Computer Science
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At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

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You can tell whether a hexadecimal integer is positive or negative by inspecting its most significant (highest) digit. If the digit is ≥ 8, the number is negative; if the digit is ≤ 7, the number is positive. For example, hexadecimal 8A20 is negative and 7FD9 is positive
Wouldn't that only be true on 16 bit systems?

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