How does the new physical settlement of stock derivatives work?

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Hi. How would this affect an option writer. Suppose I wrote out of the money options. How does it effect me if say

  1. My written options are expiring out of the money i.e. they become 0 on expiry and stock price OTM.
  2. My written option becomes ITM by closing and let’s say I cannot square it off due to illiquid bid offer and stock becomes in the money but well below my written price.

Thanks in advance.