Liquidity squeezes and credit crises are correlated: inability to repay happens at the same time as unwillingness to lend. In practice, you get a commercial paper default at the same time you get increased liquidity demands. All you need is one event; one fraud, one excess-risk taking that doesn't pay off. If Tether is investing reserves, it is only timing until they default. There is no exception, and everyone sophisticated in finance knows this. Banks play the same games with probability distributions on risk assets; this 'social science' still reliably fails and banks are accordingly bailed out. Tether has no such recourse.