I missed that, to me that makes the ‘32’ in the name misleading.
The effective mantissa is like FP16 but it's padded out to be the same size as FP32.
In other words, there's 1 sign bit, 8 exponent bits, 10 mantissa bits that are USED, and 13 mantissa bits that are IGNORED.
1 + 8 + 10 + 13 = 32
The 13 ignored mantissa bits are part of the memory image: they pad the number out to 32-bit alignment.