There is a wired article talking about how bitinstant got hacked for around $12000, so they lost a significant amount of money (if it IS true), in that instance AND with bitcoin skyrocketing in value, im sure they would loose tens if not hundreds of thousands if they paid everyone the value of the coins when its late compared to when you buy
That's old news. It also wasn't really a 'hack'. They gained access by asking for it, and it was given to them. Proxying through somewhere when you are up to no good isn't anything new either. Back in March i was making transfers through BitInstant without any problems. This is a new issue based on timeframe. Besides, they've always collected the same percentage (It actually has gone up significantly since I've been using them for MTGOX -> Paypal withdraws). So with the larger amount of volume flowing through, that just means more income for them. I'm sure 12K missing bit pretty hard, but the recovery process and moving forward should be done and over with at this point.