But nah, why would we have a Bitcoin edition? A Tether edition sure, but its peg hasn't been its only point of contention, and if the dollar and all other fiat no longer need to be fully backed 1-to-1, why would Tether need to be?
I always thought it was the (lack of) transparency that was our problem with all coins with issuers.
I think OP's whole point is Bitcoin right now in trading is heavily paired with USDT so basically if USDT got screwed in terms of its price it will pbviously affect Bitcoin's price so as other cryptocurrencies being paired with it. The crash in USDT will just result to these Tether hodlers to jump out and exchange every USDT they have and accept all sell orders in the market, prices will go down as a result. So if this is a potential big short I think exchanges need to act out and consider slowly removing USDT pairs in their platform.