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If that were true, they would print Tether when BTC price climbs, and perhaps get rid of Tether when the BTC price falls.

What happened instead was that they printed more Tether (450MM) when the bitcoin price was collapsing.

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They could be printing tether when BTC collapses to allow themselves to buy more BTC to try to pump it back up. This would make it in essence backed by BTC since it's what they are holding.

when they print it doesn't matter really since whenever BTC drops they are suddenly running a fractional reserve. the whole system is unstable if the theory is true.

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