The hacking incident posed a significant challenge for Bybit, which nevertheless managed to restore stability and trading volumes.
Introduction to the Incident
On April 9, 2025, Bybit, the world's second-largest cryptocurrency exchange by trading volume, played a significant role in restoring market stability after the largest hacking incident in the crypto industry. The exchange successfully regained significant trading volume through the implementation of comprehensive measures to safeguard liquidity.
Measures to Restore Liquidity
Block Scholes' analysis highlights the deployment of the Retail Price Improvement (RPI) mechanism as a critical factor in the exchange's rapid recovery. Introduced just days before the security incident, RPI orders provide Bybit users with a specialized liquidity tool designed exclusively for retail traders. This implementation significantly improved order book depth and tightened spreads for everyday traders.
Market and Bybit's Recovery Share
Post-incident, Bybit's market share rebounded from 4% to 7% within a week. Technical improvements helped restore key metrics such as spreads and order book depth to normal levels, contributing to the restoration of market confidence.
Bybit demonstrated an impressive ability to quickly adapt to market challenges and restore its market share, confirming its reliability as a trading platform.
