Plus: Say everyone assumes that USDT is about 60% collateralised with very liquid stuff, and everyone holding USDT is comfortable with that undercollateralisati

Plus: Say everyone assumes that USDT is about 60% collateralised with very liquid stuff, and everyone holding USDT is comfortable with that undercollateralisation. Now USDT has just lost 10% market cap, so now they're just 55% collateralised (before: 60/100, now: 50/90). You might still be comfortable with that cushion, but some people might not. They'll redeem their USDT. Etc., we have a classic bank run.