However, neither our longstanding nemesis, CVA, nor the perpetrators of this act, Hydra, were in a position to take advantage of our discombobulation. In fact, we and our allies continued ongoing mop-up operations against CVA's remaining holdings in Providence throughout this episode. We formed a new alliance named Damu'Khonde and re-took some key systems (9UY and KPB).
After it was apparent that we weren't going to "failcascade" as we say in EVE, the thief who took our alliance gave it back to Karn Mithralia, the U'K executor at the time of the theft. Karn had effectively resigned and had supported but not actively participated in the formation of Damu'Khonde.
So anyway, for a variety of reasons, both practical and ideological, it was decided to keep Damu'Khonde going forward and mothball Ushra'Khan.
At this point, Damu'Khonde is consolidating Ushra'Khan's assets and moving forward with Karn's assent. But Karn and his corporation are staying in Ushra'Khan, and reserving the right to re-activate it at a later date. Which I just love because it couldn't be more like an end of season cliffhanger...