On flat generators and Matlis duality for quasicoherent sheaves

We show that for a quasicompact quasiseparated scheme $X$, the following assertions are equivalent: (1) the category $\operatorname{QCoh}(X)$ of all quasicoherent sheaves on $X$ has a flat generator; (2) for every injective object $\mathcal E$ of $\operatorname{QCoh}(X)$, the internal hom functor into $\mathcal E$ is exact; (3) the scheme $X$ is semiseparated.
Comment: 8 pages, added Section 3