Bad News for Tether and Bitfinex, but that Scam has been known for quite some time for people who paid attention to it. Yes, the Market will need to adjust to the new fact that Tether will likely fail and will tear down Bitfinex as well. The lost of confidence, volume, liquidity and trust in the market will lead to a further sell out.
When all the dust settles than I think the outcome for the whole cryptocurrency market is much better in the long term without Tether and Bitfinex.
My next guess on this list is Ripple XRP the market will adjust to this flawed system as well.