We've just gotta also keep in mind that these BTC insurance reserves would only ever be dipped into during a death spiral.
Not when HBD goes to 96c.
This is a great point! Indeed, the fund would not be for regular use, as in fact the 3Speak post mentioned. It would be likely a threshold of 60-80c before this fund would even be touched, and that threshold would be settable by witnesses to adapt to different circumstances.