LKE 2.0, page-1648

Most of the shares that are loaned out to shorts come from index funds.

Since LKE is being removed from the ASX300 after today's close, those index funds that track the 300 (including some thematic ETFs that include 300 stocks etc) will be asking for the borrowed shares back before they exit.

Large volume will go through at the close of trading today as instos rebalance their holdings. Sometimes there can be a shortfall (resulting SP increases), but more so on index entry from what I've seen.

By Thursday next week we should see how many shorts closed out today (T+4). I would expect them to be significantly lower than now.