Good news, looks like we can claim our funds back... looks like the process is gonna take 90 days though, no other option than to hold 
To be honest, I don't feel good at all, they didn't say will refund 50BTC or larger fully, (which means they lose money, truely hacked). Secondly, due to the nature of Instawallet, apparently the hacker could claim the money as well if they got access to the database of the URL. Thirdly,that is 90 Days and you know those "delay" tatics a lot of scammers use, first 90 days, then another 90 days, then partial refund, then....Quote
INSTAWALLET SERVICE NOTICE
The Instawallet service is suspended indefinitely until we are able to develop an alternative architecture.
Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is.
In the next few days we are going to open the claim process for Instawallet balance holders to claim the funds they had stored before the service interruption.
Important information on claims submission:
For the first 90 days we will accept claims for individual Instawallets. Your wallet's URL and key will be used to pre-populate a form to file the claim.
After 90 days, if no other claim has been received for the same url, your Instawallet balance under 50 BTC will be refunded. If several claims have been filed for the same url, we will process those claims on a case by case basis, under the presumption that the claim we received first belongs to the legitimate balance holder.
Claims for wallets that hold a balance greater than 50 BTC will be processed on a case by case and best efforts basis.
The Instawallet service is suspended indefinitely until we are able to develop an alternative architecture.
Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is.
In the next few days we are going to open the claim process for Instawallet balance holders to claim the funds they had stored before the service interruption.
Important information on claims submission:
For the first 90 days we will accept claims for individual Instawallets. Your wallet's URL and key will be used to pre-populate a form to file the claim.
After 90 days, if no other claim has been received for the same url, your Instawallet balance under 50 BTC will be refunded. If several claims have been filed for the same url, we will process those claims on a case by case basis, under the presumption that the claim we received first belongs to the legitimate balance holder.
Claims for wallets that hold a balance greater than 50 BTC will be processed on a case by case and best efforts basis.
Not saying they are, but this is not good news at all.