If the price of bitcoin has been inflated by counterfeit tether in the market, wouldn't that suggest there is sizable holding of BTC at Tether HQ. It may be a terrible way of doing business (hence, they are refusing an audit) but when BTC is climbing so much faster than USD, they will get to a point where they can just gradually release BTC back into the market until their USD holdings match the tether in the marketplace whilst pocketing a sizable amount of BTC.

This is a terrible way for them to be doing business but if they are, I wouldn't think they'd have been stupid enough to invested more than 50% of thier USD holdings in BTC knowing that in this period of manic growth there was no way known there would be requests to withdraw 50% of the holdings. If it gets to the point where Tether collapses, it will be a very sudden one but if they've played their cards smart and BTC can keep growing organically, these guys are gonna be super rich and the public nonethewiser.