Bybit covered $1.5B last year, so it shouldn't be surprising that Binance, a much larger exchange, is able to cover 4x more.

I think people here underestimate how profitable these exchanges are.

Right, but the flipside is that a lot of people also go "look how much money they're making, they couldn't possibly go bust". Whole lotta people said that about Mt. Gox, FTX, Gemini, etc. Making a ton of money doesn't prevent you from doing dumb things with it and having no liquidity when the reaper comes.