Earlier quoted context omitted.
It is also very useful for some lockfree algorithms, e.g. to fit a pointer and a sequence number within a 64-bit value.
You should be very careful when doing that. It may be rare in practice, but it's surprisingly easy to trigger ABA issues with only a 16-bit sequence number.
But yes, it is definitely something to be aware of!
BTW, if the pointers are always aligned, the sequence number may have a few bits more.