Didn’t Soviet Union dissolve and get replaced by possibly the worst imaginable version of hard capitalism?

Basically. It's a kleptocracy, with systemic theft from the masses going to oligarchs with Putin at the top of the heap. Also dangerous is its political structure. In a well functioning liberal democracy, power is diffused with well defined rules around transfer of power. Putin has for decades been operating without someone else there if he dies or retires. It's why he's built up a macho image. Putin must be healthy, or there will be political chaos with no obvious successor. In a system with more diffuse political power, the government barely blinks. Case in point: President Kennedy being assassinated had an incredibly minimal effect in terms of some sort of power struggle.