Is it possible for USDT to collapse?

I'm a bit concerned about the stability of USDT. With the volatile nature of the cryptocurrency market, is there a chance that USDT could collapse? I understand that it's backed by the US dollar, but what happens if the demand for USDT suddenly drops or if there's a major liquidity crisis? Could this lead to a collapse of the USDT peg and significant losses for investors? What measures are being taken to ensure the stability of USDT? I'd appreciate it if you could shed some light on this matter.