Comment by brandoncarl

Tether's underlying assets are almost certainly worth less than $1. You can see this by taking each asset class and marking it to market.

I've provided details here: https://twitter.com/brandonjcarl/status/1536310742261047296?...

By itself that's not enough for Tether to "fail". It does mean that the asset is in a position of very high risk and subject to a run.