Is it possible to obtain K3 (or any other compact hyperkahler manifold) with its hyperkahler structure as a hyperkahler quotient of an infinite-dimensional affine quaternionic vector space with an affine action?
I have seen people claiming that it is true: indeed, K3 can be obtained as the moduli space of stable bundles on another K3, and (ostensibly) this hyperkahler structure can be obtained as a hyperkahler quotient by the gauge group. The reference that I have seen is Theorem 4.1.2 from Oliver Nash thesis https://arxiv.org/abs/math/0610295. However, I don't see how it gives a K3 (and if it does give it at all).
I think I have a proof showing that this is impossible, and I am trying to see where it is wrong.