If I short tether, I am borrowing tether and selling it immediately. I get the proceeds from the sale immediately. The person who lent me the tether can be lef

If I short tether, I am borrowing tether and selling it immediately. I get the proceeds from the sale immediately. The person who lent me the tether can be left holding the bag - I can't. That's because I, the short seller, am not owed anything but the counterparty. It's like taking out a loan - if the bank goes bankrupt, you don't lose anything since you _still_ have the cash.