Bybit Security Breach: A Post-Incident Analysis & Liquidity Recovery

On February 21, 2025, Bybit experienced a major security breach when its Ethereum cold wallet was targeted, becoming the world’s second largest cryptocurrency exchange by trading volume. This incident triggered a $1.5 billion exploit during a period of global economic uncertainty marked by declining market values and heightened volatility. The report analyzes both market reactions to the attack and Bybit’s recovery efforts, specifically examining liquidity metrics, RPI order impact, and industry-wide adaptations.