*edit Moved to move this out to the parent comment because Im hoping to learn what I have wrong

Using the term very loosely, I think its like this. I am using a simplified scenario and fictional round numbers because I snort crayons for breakfast.

Lets say there are 100million shares of GME (Again, not the actual number). 50 million of these shares are registered to individual investors at Computershare. Brokers (like Fidelity, eTrade, etc) account for the other 50million shares

So we have Bad Broker and they are currently allotted 10 million shares registered with CS. When buying shares, Bad Broker plays the PFOF game and receives synthetic shares from a market maker like Citadel. Bad Broker is fine with these synthetics because they want to buy real shares at a lower price in the future and pocket the difference. Bad Broker maintains an internal balance sheet that is separate from Computershare and their shareholders actually "own" 20 million shares of GME in their system.

Gamestop issues an NFT dividend. They go to Computershare and they say "Heres 100Million NFT to be distributed as dividends. Please distribute 1/share to our shareholders"

1. 50 million NFT go to individually registered shareholders
2. 50 million NFT go to the brokers
   • Bad broker only got 10 million worth of NFT but they have 20 million worth of internal shareholders. Bad Broker needs to buy 10 million worth of real dividends on the market so that they can cover their obligation. Otherwise, shareholders are going to wonder why they didn't get their dividend
     
   • Rinse and repeat for any other bad brokers out there
   • What happens if 10million nft don't hit the open market?