If we assume, conservatively, that hot wallet assets backed OI positions that were only 5x leverage (which would be low for the most degen leverage exchange) That means you've got 7.5B on unbacked leveraged positions on ByBit *at least* That may resolve fine if the market chops and there are no big wins on those positions and they can pay down, but since there is a sell down you've got: -Remaining collateral being worth less -Unbacked long positions accumulating more debt against missing collateral The ByBit insurance fund also claims to have 400M USD but its unclear what assets this is held in. Even if its in USDT, 400M covering 1.5B-7.5B+ in liabilities is going to be painful. Seems like best case scenario here is them trying to auto-deleverage positions, and people *might* get 1/3rd of lost assets back, unless they have other corporate holdings to help cover the funds.