I also fully believe Bitfinex is likely to be manipulating USDT. It is the only way it makes sense. But check this out, here's why you should not wish too hard on its failure:

It is too big to fail because a lot of BTC would lose value over night, the entire plug would be pulled out of the industry due to the loss of confidence. Predatory and uninformed legislation would happen while the price and negotiating power is low, and in this time, that is when you really see the blood hit the floor with regard to scams, theft, crime, etc.

Regardless of your position on USDT, you should pray this never happens.

Edit: For the critics of cryptocurrencies responding below, allow me to make this response -- I didn't have anything to do with subprime mortgages, along with most of USA, however we all paid dearly for that mistake. As the comingling of cryptocurrency and traditional markets become increasingly intertwined, what makes you think that the ancillary effects of a crypto crash wouldn't effect you in some way?