So what though?

Is Twitter going to spend the next few years litigating this just to force someone to buy the company that doesn't want to? Elon's team can drag this on and on.

What will happen to the value of Twitter's stock in the meantime? What will happen to the value of working at Twitter? It'll become a zombie company.

Yes, that's exactly what will happen. If Twitter were to say now "OK, let's forget this whole thing happened" the stock would drop massively: not only are they losing any chance at the $44B buyout, they are also admitting they (1) lied in their current contract, and (2) likely have huge bot issues that they would rather not litigate.

The only option for Twitter to continue existing is to sue Musk for the amount he promised.

What will happen to the price of the stock is that it will be inflated over the "true price" by risk adjusted premium of the buyout.

Stock price = "stock price without Elon owning it" + "Elons premium" * "likelihood of Elon losing the lawsuit and being forced to buy the company"

That likelihood should never be less than 0, so I think this legal fight would only help the twitter stock price.

I guess I am assuming that the "true price" is actually lower than what Elon offered for it.

It's worth north of $20B to Twitter shareholders and they have an (almost) rock-solid case. You can bet your ass they're going to spend the next few years to fight for it.