In my opinion, etrade (ETRF) and ATDF rerpresent real shares - that can't have a delivery failure, as they wouldn't be sold if they didn't exist.
Further, ETrade is not a "he" or a single person - but rather a collection of distributed decisions and distributed benefit(as compared to hedge fund or other single entity market makers - where there is a singular decision and single point of all the benefit accruing).
So, IMO the trading dimension of AMBS could be normalized if there were a way to coordinate the ETRF and ATDF activity aimed with an emphasis on value (which is the only way those groups can ultimately win) vs relying on a strategy that involves the ability to failure to deliver shares sold.