ASM shares held by REMX Rare Earth/Strategic Metals ETF., page-328

Hey man, sorry saw this last night but was drunk.

my short understanding is this

Some funds have to own certain companies based on their inclusion or exclusion from an index.

so whatever funds has ASM based on its position in the MVIS index will now have to sell their positions and purchase positions in the included companies.

Issue is for them, is that if those institutions were those which had lent out their shares to the short sellers, they will now need those shares returned in order to then sell the shares themselves.

partly though, as collateral is ordinarily pledged with the lender, it could occur that the short sellers will have to give up their collateral if the cannot cover