Let's say there is 60 Billion total Tether, but only $30 Billion backing it. As soon as people realize the issue, they will trade USDT for USD. Tether will def

Let's say there is 60 Billion total Tether, but only $30 Billion backing it. As soon as people realize the issue, they will trade USDT for USD. Tether will defend the peg, spending $30 Billion to hold it's value at 1 USDT for $1. Thirty Billion later, the overall situation is 30 Billion USDT remaining, but the bank vaults are empty nothing left over to defend the peg. At this point, USDT snaps to $0 very quickly.