Well Tether can only have two stable states $1 or $0. A Tether is never going to be worth $2 so at worst i am paying interest on the short.

> Well Tether can only have two stable states $1 or $0.

Instability is often what kills short sellers.

On average the sea is flat.

If Tether goes to zero your counter-party risk goes to infinity.

In the meantime it has all the hallmarks of a scam manipulated asset. Shorting it will get you liquidated at the whim of the manipulators.

Not my house. I use kraken so I think I will remain less affected than users of other, less credible, exchanges.

Cryptocurrency has been working just fine before tether, and it's going to work just fine without it. We've seen ups and downs. So I don't think it's that crazy when the house has failed many times in the history of cryptocurrency.

Tether is The House. It doesn't matter what exchange you trade on, the price of Bitcoin (and by extension all crypto) is settled in Tether.

Take a loan in tether, sell it for real USD. Wait for tether to crash. Buy tether back and pay back your loan.

Why should I care about BTC when shorting tether?

No one is giving you an unsecured loan in Tether.

What's your collateral?

USD.