Every government has complete control on how much of their money exists. If it disappears from the private finance market, it can compensate with any amount it wishes.
It would be better to lean into inflation and just dump a ton of money into the bottom of the market to dilute the top. Of course this only makes sense if the government is willing to regulate market control, which it has demonstrated time and time again it will not.
The reset is prone to happen by other means.