If a library is using Item Level holds and a patron places a specific item hold. If the library finds that this specific item is missing, they can change the item to missing, however, the hold is still attached to this item. The library then needs to remove the item level hold and re-attach it to another item or make it a bib level hold. It would be nice, if this change of "Lost" status of this item is altered, the hold can be changed to a bib level hold or an easy ability to adjust the hold as necessary.
I think changing to a bib level hold might not be the right thing as the other items might not be the 'same' (thinking about holds on serial issues or mixed materials with items attached to one record)
It seems that even if the hold is Bib level this still happens - changing the only available item to Missing (or any other lost status) silently removes the hold from ALL holds reports. The hold exists as "pending" but there is no mechanism to alert staff to find it. The Bib level hold is not listed on any of Holds to Pull or on the Holds Queue or on Holds Ratio (ratio=1). This means there is no regular holds report that staff can use to follow up holds where the only/last item is set to 'missing'. Staff should at least be given warning that this status change will hide the hold. I would like it to continue appearing on all the holds reports with a missing/lost flag to ensure staff keep looking and order a replacement, or let the patron know and cancel the hold.
This bug is mostly a duplicate of bug 20844, which would handle both item-level holds, and bib-level holds that already have a specific item allocated to them. But I agree with Agnes that it would be helpful to handle unallocated bib-level holds when the last/only item on the bib is marked missing, too.