Re:

the halving, drove prices up, right in time for the hack? what happened? as you can see from the charts it does not behave like a currency

it is not the hack decline it is the overall up and down volatility. check against other currencies. it acts as a security, on bad news.

How does a currency behave when the banks get hacked?

The pound dropped a lot on brexit, did it not? How is that different.

Also the hack is large scale enough for liquidity issues to pop up.

People may also sell their coins until they can audit their security.