Imagine someone or an institute or a group of institutions or agency who are allowed to print papers (money) as much as they can and putting all in the bitcoin market. Coins are going to their wallet until the last few left.
Isn't tether is doing something like this? They haven't backed 1 tether to one entire USD. If they have, where is the proof? If situation comes to what you have quoted, it will go out of hand.