Why would anyone continue to hold Tether or buy Tether considering the risk involved? It just doesn't seem to make any sense to me whatsoever.
The whole point of stablecoins is that they are supposed to be the lowest risk crypto asset, offering the most security and stability, akin to a US Treasury or a money market mutual fund (although unfortunately stablecoins by themselves don't offer any yield). Tether is not the lowest risk.
Here is a long post outlining the risk of Tether, with plenty of associated reading in respected publications.
Tether openly admits, on their transparency page, that it's not backed 1:1 by cash equivalents, like it used to claim.