to support and acquire massive amounts of bitcoins during some of the larger dips at least.
That's nonsense. Court doesn't give a shit about what Tether is being used for, the only thing they care about is to make sure no centralized body is printing money. You can always peg something 1:1 with the already printed dollar though.
The issue with Tether has always been that they haven't been able to convince the authorities that it is backed 1:1.
As for its usage, it is used in the altcoin market for the most part not bitcoin. So your statement here is wrong on another level too.
I do agree that they failed to back it up 1 to 1 and that is the "main" problem that they had but the reality is that it is not the only thing that they have used it for so that could create a problem. For example* Buying bitcoin at the bottom. Now you may think that it is a smart decision, no matter how much money they have, they could simply buy bitcoin at the bottom and sell at the top and make a lot of money right?
Well, what if they buy and it drops even more? At that point they are really supporting at 1 to 1 ratio because they have lost money. Basically courts do care what they do with the money if the end result is not being able to back it 1 to 1. Obviously it is something that always connects to 1 to 1 but how they failed is important too.