Similarly, what happens to anyone willing to participate in governance? they just get diluted massively.
Technically you could hedge this, effectively backing out the leverage, by maintaining a small side holding of fiat or even HBD. If you get diluted at low HIVE prices you could then regain your governance share by using the stable holding to buy more HIVE.
RE: Almost 10 million HIVE withdrawn from the exchanges in just one week!