3. **The Contagion**: - Crypto exchanges holding billio…

3. **The Contagion**:
- Crypto exchanges holding billions in USDT face insolvency
- DeFi protocols with USDT collateral trigger cascading liquidations
- Bitcoin and other crypto assets crash 70-80% as USDT is the primary trading pair
- Regulated stablecoins (Circle's USDC, etc.) face redemption panic despite being properly backed