I did some further research utilizing ChatGPT, specifically concerning the assertion that shares held at Compshare (I have some in there as well) must be sold short when sold since they aren't part of the float. I got a long response, but here's the executive summary:


"
" ✅ Summary
Statement True/False Explanation
Selling shares from exercised warrants = short sale ❌ False The shares are newly issued, not borrowed.

CompuShare holdings = not part of float ✅ Technically true DRS shares are not in broker float, but still legitimate common stock.

Selling while held at CompuShare = short sale ❌ Misleading Only if sold before receipt, and even then it’s not a “naked” or “intentional” short.

Brokers treat these as “short” until settled ✅ Sometimes Due to timing, but they’re “short against the box” — not a bearish short position."

As you can see the table got a little woppejawed by the formatting, but you get the point, even in cases where these technically end up being sold short because the seller has an itchy trigger finger or whatever, they're not true short sales in the regulatory sense; ChatGPT went on to say that when these "short" sales occur, they're basically just an artifact:

"
Where the Confusion Comes From
This may stem from timing mismatches in how the shares are:

Registered at Computershare (direct registration, DRS) vs.

Delivered to a brokerage account for trading.

In some rare setups:

A seller may place a sell order before the transfer agent has officially delivered the shares to their broker.

In that case, the broker might technically treat it as a “short against the box” — i.e., the shares exist and are owned, but haven’t been delivered yet to the trading account.

This is not a traditional short sale, because there’s no intent to borrow and profit on a price drop. It’s a settlement timing artifact."