I'm still trying to wrap my head around HERO. I started playing with it a couple days ago and reading up on some great posts by @biophil and replies by @stan. I'm confused right now as the settlement price is higher than the market price:

What will drive the price up above the settlement price? If the settlement price remains high, will people continue to short it into existence and immediately settle it? Do those who don't have enough collateral immediately get stuck converting at a higher price than they may have wanted? Is there a way to know what level of collateralized HERO is currently at risk for being asked to settle next? It's all so confusing for new people to wrap their heads around and seems like some wallstreet banker magic or something.