> When folks want to dump Tether, they generally cannot dump it directly into dollars. They have to dump to Bitcoin, move it off-exchange, and then sell the dollars on an exchange with fiat currency.

Not sure where you got that from, but that's not true whatsoever; USDT/USD is a thing in a bunch of exchanges with really healthy volume. Other than a few months ago (perhaps the run you mentioned in May) there's normally no premium and the peg is down or up by perhaps 0.5% or so.

Maybe you are saying that because Binance, the largest exchange doesn't have a USDT/USD pair (they don't have any USD pair afaik), but you can easily withdraw USDT and sell them for USD directly in other exchanges.