This is the weakest theory I've read yet; people aren't exiting tether because it's too inconvenient. Forgetting that they would've already gone through the KYC

This is the weakest theory I've read yet; people aren't exiting tether because it's too inconvenient. Forgetting that they would've already gone through the KYC process when they entered the crypto market, and there's little hassle in a market sell-order and withdrawal request. The only inconvenience is the time the bank withdrawal would take to process, which isn't necessary unless your plan is to exit the market entirely, as exchanges are covered by FDIC insurance.