I think it is most likely lending stock to others (intermediary)which is part of the service of a custodian. The MS Custody arm would serve quite a number of International Fund Managers as Custodian as most Fund Managers are required to have a Custodian to hold their funds by law.
I am convinced MS is not involved in any shorting of ABS.
ABS
a.b.c. learning centres limited
morgan stanley borrowed stock, page-5
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