that means that eventually, on average, every bitcoin in bakkt's vaults will be re-pledged twice. bakkt's supply would essentially be tripled out of thin air. this is one of the ways wall street suppresses prices.
I seem to remember Bakkt saying something along the lines of 'well, we could do that but, trust us, we won't because that would be uncool.'
That type of attitude
really doesn't tend to last very long.
The one thing that BTC has to defend against that that nothing that's gone before it has had is the ability to personally verify it near instantly. I get the feeling that hardly anyone will give a shit if they have dollars dangled in front of them.