If it’s 70% backed for example, not being algorithmic is exactly why they will first redeem at $1 for the first 70% withdrawals, and then declare bankruptcy and

If it’s 70% backed for example, not being algorithmic is exactly why they will first redeem at $1 for the first 70% withdrawals, and then declare bankruptcy and the last 30% are worth $0. In practice if this is the case they will probably redeem the first 50%, and then run and hide with the remaining 20% USD they have.