how does the "touch" mechanism work? its so tiny. theres no button. i dont even see room for a button

Yes I thought the same thing. There is no mechanical button. There is a tiny light with a small sensor that recognizes contact. Your not actually pushing so much as lightly touching. I’ve been using mine for about a year now and trust me it does really work.

Most accounts that allow these typically also require a less secure backup option if you lose your key. So can't hackers just bypass the Yubikey?

There's usually an option to use something besides the yubikey, however, I would hope you've picked out another password that's as strong as you can get it. Or, on the other side you could get another yubikey and register both of them. I actually have two keys and a nano. One key for the wife and the nano for my main pc, the third is around my neck on a stout cord.

Description says "designed to stay in the port so you can stay connected and secure anywhere." So if my laptop is stolen then so is my security key?

Two answers -- the technical answer, and the practical one: Technical: Your security key would be stolen. At that point, you would use a backup method to connect to your accounts (from another computer) and you would disable your lost YubiKey as a valid MFA/2FA method. Practical: I believe the spirit of the original question is more around "if my laptop is stolen, and my YubiKey is in it, can't the thief access my secured accounts?". And, the answer to that is "technically, if the laptop thief also knows your account password, they would be able to use the YubiKey and get past the second factor of authentication when logging in". In all likelihood though, the thief just wants your laptop hardware. The YubiKey purpose is really to protect your accounts from being logged into by a nefarious hacker, online somewhere around the world who somehow has your compromised username/password combination. The likelihood that the laptop thief and the online hacker are collaborating is pretty low unless you are an international spy, dignitary, billionaire, or other "high value target". But if that describes you and you use a laptop, best to try one of the more removable YubiKey options.

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🔐 Secure your digital life with the tiniest titan of authentication!

MADE IN USA SWEDEN - Crafted with precision and trusted quality from global tech leaders.
DISCREET ULTRA COMPACT - Nano size fits perfectly on your keychain or laptop without bulk.
NEXT LEVEL AUTHENTICATION - Supports FIDO2, Yubico OTP, OATH-TOTP/HOTP, Smart card, OpenPGP & more.
UNBREAKABLE DIGITAL SHIELD - Durable, waterproof, and crush resistant for ultimate protection.
UNIVERSAL ACCOUNT GUARDIAN - Seamlessly works with Google, Facebook, Dropbox, and 100+ services.

The Yubico YubiKey 5 Nano is a cutting-edge USB-A security key offering multi-protocol two-factor authentication. Waterproof, crush resistant, and ultra-compact, it protects your online accounts across 100+ major platforms with unmatched durability and convenience.

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Flash Memory Type	usb
Manufacturer	oem
Global Trade Identification Number	05060408461457
Item Height	0.12 Inches
Item Width	0.47 Inches
Product Dimensions	1.3 x 1.19 x 0.3 cm; 5.67 g
Item model number	Y-240_SML
Are Batteries Included	No
Item Weight	5.66 g

Yubico YubiKey 5 Nano Two Factor Authentication Security Key - Black - USB-A

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