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Bybit Demonstrates Resilience After Major Crypto Hack, Restores Market Stability

Bybit, the world’s second-largest crypto exchange, swiftly recovered from a significant hacking incident, restoring liquidity and regaining market share through innovative measures.
Published on 2025-04-09

Bybit's Swift Recovery from Crypto Hack

Bybit, the second-largest cryptocurrency exchange by trading volume, successfully restored market stability and regained significant trading volume following a major hacking incident. According to a postmortem liquidity analysis by Block Scholes, the exchange implemented robust measures to safeguard marketplace liquidity during the crisis, achieving a rapid recovery despite challenging macroeconomic conditions.

Retail Price Improvement (RPI) Orders: A Key Factor

The deployment of Retail Price Improvement (RPI) orders was pivotal in Bybit’s recovery. Introduced just days before the hack, RPI orders created a privileged liquidity pool exclusive to retail traders, excluding institutional and algorithmic traders. This mechanism allowed retail traders to access deeper order books and tighter bid-ask spreads, providing better prices than those available to institutional traders.

The RPI orders quickly became a significant source of liquidity for major assets like BTC, ETH, SOL, and DOGE. Data showed that RPI orders accounted for over 50% of order book depth at 5–10 basis points from the mid-price and up to 30% within 5 basis points. By prioritizing retail access, Bybit diversified its liquidity sources and enhanced its competitive edge.

Regaining Market Share

Bybit’s market share rebounded to 7% from a post-incident low of 4%, with key metrics such as bid-ask spreads and order book depth returning to normal levels within a week. The exchange’s ability to stabilize liquidity and restore confidence contributed to its swift recovery, despite broader market downturns.

About Bybit

Bybit is a leading global cryptocurrency exchange serving over 60 million users. Founded in 2018, Bybit is committed to creating a simpler, open, and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners with leading blockchain protocols to drive innovation and provide robust infrastructure for decentralized finance.

For more details about Bybit, visit Bybit Press. Follow Bybit on social media for updates and insights.

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