In a significant blow to the cryptocurrency sector, crypto exchange Bybit suffered a massive hack that resulted in losses of approximately $1.5 billion worth of ether (ETH). While Bybit has rebounded, market experts have analyzed data revealing the impact this incident had on the broader crypto market. 2023 saw a post-hack dip in trading volume for various assets, largely attributed to pre-existing de-risking trends in the crypto world including escalating geopolitical tensions and the debut of DeepSeek’s AI model. Analyzing Bybit’s recovery trajectory, experts found that the hack affected market dynamics such as spot trading volumes, bid-ask spreads, and its new retail price improvement (RPI) orders. Following the attack, a surge in hourly trade volume for all Tether (USDT) pairs briefly deviated from average levels before decreasing in Bitcoin (BTC) and altcoin trading volumes over subsequent days. 5% to below 20%, respectively. Bybit’s share of the spot market shrunk from 11% to just 4%, with BTC trading volume dropping from 50% to less than 20%. ETH volume, however, remained relatively stable. Despite the decline in trading activity, bid-ask spreads remained tight, suggesting high liquidity and low execution risk. 7% share of the market. A week after the hack, order book depth for Bitcoin and Ethereum began to recover rapidly, attributed by experts to Bybit’s RPI orders. RPI orders aim to enhance retail trader liquidity. Introduced on February 17th, just days before the attack, these features create a pool of deeper liquidity for retail traders through the platform’s user interface. The postmortem analysis published on CryptoPotato provides an in-depth understanding of the impact this incident had on the crypto market.