A dropping market cap absolutely doesn't mean that liquid, easily USD convertible assets were used to redeem them. It is quite possible that a number of exhang

A dropping market cap absolutely doesn't mean that liquid, easily USD convertible assets were used to redeem them. It is quite possible that a number of exhanges which had traded IOUs for Tether, Traded that Tether back to have the IOUs canceled. Edit: Now that I think about it, it really would make sense. They are fighting to keep these records secret, but they may also be cleaning up their books a little in case they lose and have to make their holdings public.