What would actually happen to the market if Tether bubble burst?

Given all the FUD around Tether, what would actually happen if they go bust? Most trading is done in USDT/Coin pairs, also there are many pools paired with Tether.. IL losses just on those would be 99.9%. Also what about crypto loans issued in Tether or Tether being used as collateral? They all become void? Loss of that much liquidity in the market could make all sell and buy transactions have huge price impact. That kind of stuff often happens in small cap projects where $10k buys increase the price by 2x cause of low liquidity.