There are pairs of "hard" USD coins trading vs Tether like USDC and BUSD on open markets. The peg of Tether would be tested on those pairs on days of net fiat outflows. e.g. if you look at the trading volume for today...

https://coinmarketcap.com/currencies/tether/markets/

• $420M for BUSD/USDT on Binance
• $163M for USDC/USDT on Binance

If Tether is really as undercapitalized as the post claimed, it should have failed quite a while ago.

I suspect the real situation is not as black and white as this type of FUD claims. Tether is still shady as they would never disclose any accounting or audit statements. As to why they wouldn't provide audit statements... it may be a mixture of the following:

1. There may be times in the past they were not fully capitalized.
2. They may be holding assets other than hard USD as reserves, probably to generate revenue - which carries risks depending on what assets they're using.
3. They may have been depending on "loans" or using the trading fees from Bitfinex to fill out reserve shortfalls in the past - which can "work" but are not legally proper.
4. They do not want to disclose who their customers are.

If that's really why they wouldn't disclose audit / accounting statements... then the kind of sudden implosion scenario would be unlikely unless they have a major screwup with point 2 above. However, I would really like to see the crypto markets move away from USDT and go to the hard USD coins like USDC.