most common thing i've seen regarding manny is moving him to 3rd, which would be interesting because he requested out of 3rd already and said he had no intention of moving back.
Moving back to short last year made a lot of sense. There aren't many SS who can hit like him. It always felt like a free-agency play to me. His power at short overshadows power as a 3B.
Besides, he'd play short for the Yankees at least half the year while Gregorius is out. After that? There's always the possibility Didi doesn't even return next year, which could open the possibility that he never plays for the Yankees again.
The most likely scenario involving Manny and the Yankees is Machado signs, plays short for a few months, Didi returns, and Machado says "Look guys, I don't care where I'm playing, I'm the highest paid position player in the sport. Just keep signing my checks."
That's assuming the Yankees supposed decline in interest is for real. Which I don't believe.