Crypto exchange Bybit is recovering from a major incident resulting in a $1.6 billion loss. A report by Block Scholes explores the details of the hack and subsequent recovery.
Impact of the Hack
Bybit faced significant losses due to the hack, with its market share dropping from 10% in January 2025 to just 4%. However, the report shows that this figure rebounded to 7% within weeks.
Market Share Recovery
Following the sharp decline, trading volumes and order book depth stabilized. "While the hack triggered a sharp but brief disruption in volumes and order book depth, bid-ask spreads remained largely intact," the report noted.
Retail Focus
Partly due to the launch of Retail Price Improvement (RPI) orders, available only to retail traders, Bybit was able to restore its liquidity. This feature significantly improved liquidity for RPI orders compared to regular orders.
Bybit's recovery after the largest hack in history highlights the importance of retail investing and new features designed to support traders. The exchange shows that even in times of crisis, it is possible to regain lost market positions.
