Realizing that this was a bad move, the Spartan government tried to reinstate Lysander. This task would not be an easy one for Spartan law made it illegal for a man to serve as navarch twice. In order to get around this, The Spartan government named Arakos as navarch and Lysander as his vice-admiral. Cyrus sent Lysander the revenues of the towns from which he received funds to witch; Lysander built a fleet at Ephesus (Demetrios Xanthippos, http://www.ancientsites.com/aw/Post/152425). .
Deciding it was time to take action, Lysander sailed around various islands showing off his fleet to Athenian land forces. After Lysander was fished, he moved his forces to Hellespont. To his shock, the entire city was left undefended. Lysander being the person that he is quickly jumped on the opportunity to take over the city. His navy attacked enemy ships while land forces assaulted the walls of the city and quickly took it over. Lysander let his soldiers do what they wish of the city. However, their glory was soon to be shut down, after 180 Athenian ships arrived to face Lysander's fleet. Expecting an immediate battle the Athenian's prepared their ships. Lysander, however, had other things on his mind. He lay motionless and waited for the Athenian's to make the first move. This instilled in the Athenian's a great confidence for they thought Lysander's troops unprepared for the upcoming battle. On the fifth day, the Athenian's sent out there usually spy ships to see if Lysander's men had any kind of movement. Like usual, they did not, and the Athenian's returned to land. But this time when they reach land Lysander and his ground and land forces, almost simultaneously, attacked. The battle proved to be a great success for Lysander and his troops. They took three thousand prisoners, with the generals, and almost the whole Athenian fleet. (Plutarch Notes: Lysander, Page 4-5).
Lysander was greeted with very well upon his return.