duck

var anyOverlapping = true;
while (anyOverlapping)
{
    anyOverlapping = false;
    for (var p1n = 0; p1n < points.Length-1; ++p1n) {
        for (var p2n = (p1n+1); p2n < points.Length; ++p2n) {
            var p1 = points[p1n];
            var p2 = points[p2n];
            var delta = p2n-p1n;
            var distance = delta.magnitude;
            if (distance < threshold) {
                var resolveDist = (threshold-distance) * 0.5;
                points[p1n] = p1 - delta.normalized * resolveDist;
                points[p2n] = p2 + delta.normalized * resolveDist;
                anyOverlapping = true;
            }
        }
    }
}