This attack may have been one of the problems, but there is some indication that BitInstant has deeper financial issues than this post would indicate. Perhaps

This attack may have been one of the problems, but there is some indication that BitInstant has deeper financial issues than this post would indicate. Perhaps a $12K hit would make a site like Bitinstant go silent and not process most transactions for weeks on end, but if that is the case then they are woefully underfunded. https://bitcointalk.org/index.php?topic=128314.1380 https://bitcointalk.org/index.php?topic=128314.1380 At various points in this thread, people posted saying the company even admitted privately to them that they did not have funds to process orders. FYI their most popular feature, Cash to Bitcoin Address, is still offline - presumably because they have no Bitcoins to deliver. The only indication that they have any funds at all is on the home page of Btc-e.com, which indicates (as of right now) that they have a $475 reserve at the site.