Responding to myself here to share the information.
https://home.treasury.gov/policy-issues/international/exchange-stabilization-fundThe ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments .... the Secretary …, with the approval of the President, may deal in goldSo there is actually a publicly known and legal way the US government can make banks purchase gold and silver for them through this backchannel. They can also authorize funds for spoofing and other market control through banks and provide them indemnity. This all came about just before the US Dollar became completely fiat in 1971, so they had to make sure they had control mechanisms in place before this to control the gold and silver price and give stability to the now completely made up US dollar. Even though this is publicly known and legal for the US Govt to use banks to manipulate gold and silver markets there are still people that think it doesn't happen.
My theory is that JP Morgan are the main silver manipulator for the US Govt, they hold the most physical according to records and are responsible for a lot of the futures trading. On the hours when the sell volume is 140% of the entire COMEX contracts for silver, ie all the paper silver that exists in the COMEX is sold and then another 40% more, this is likely orchestrated as selling into their own buys, losing money of course in the process, but being topped up by the US Govt for doing the manipulation.
Any non manipulators that purchase any of the dumped silver are settled in cash to maintain the limited amount of physical silver they are using as a backup stockpile. Otherwise they would be losing way more registered silver per day than they have been as not every "buy" for a contract is them. I suspect any large traders on the futures market know all this and more which is why some like Jeffrey Christian think COMEX can't be drained and scoff at the silver squeeze movement as they know the game.
However because they do set the price, and it is quite low rather than the 1000oz bars heading into COMEX/LBMA they are heading into the mints and industry rather than their vaults. And the non manipulator banks and futures traders that do have physical are being requested for it due to the global silver shortage. So everyone but JP Morgan are giving away their physical which is why there is a slow leak in the COMEX in regards to their physical silver holdings.
