Read Deso Games analysis of Tether. It is extremely long - most will fail to grasp 10% of what he writes.... Thats why ponzi keeps going
Correct, even according to them. I forgot how much they acknowledged it was 70% backed or something. What the crypto economy has taught us though, if something happens at one exchange/issuer, it most likely is happening at the others too.
I don't think it is necessary price related. After all Tether existed when BTC bottomed at 3K. A rumor can start a run on one of the exchanges and because everything is related and crossloaned among them, like dominos, they keep falling and they could start a Tether collapse. Here is an example: You may ask: Why does crypto.com have ANY coins held at a direct competitor?