5) they print more tether when needed to handle withdrawals. But such massive tether prints can cause market issues.
Bitfinex loaned money to Tether. On the loan contract, three people, we'll call them AB, CD, and EF, signed the contract on Bitfinex's behalf.
On the other side of the contract, Tether signed the contract for the loan. The three people on the loan signatories page for Tether? AB, CD, and EF.