I don't trust tether but have not seen any evidence of fraud. Yes there is no legal backing, but before we can make accusation we need proof of lacking reserve.

I see plenty other reasons and cause that drive this bubble i think this is fud.

But i would not hold tether, she is right that bitUSD or SBD is much safer peg. The biggest issues is that tether can easily be used to launder or use USD without regulation, i am sure authorities hate this and are looking to confiscate this money that is backing tether. I am sure that is the reason for the legal fineprint. If the money is seized than its just gone tether can shut down and it's over. If they had to pay holders than they would have a huge issue.