I've never seen HI/THF solution before, but this definitely can't go SN1/SN2,due to the SP2 hybdrid carbons in the alkene and thus has to be an addition. sp3 carbons do SN1/SN2
I think this an addition reaction. The double bond attacks H-I, adding H first to the formerly double bonded carbon, the other C now has a + charge and can indeed shift to the more substituted position where Iodine will then be the second atom added.