Parents Lisa and Russ Squire and her siblings stood as tributes were paid to their daughter at a stage adorned with flowers and pictures of the 21-year-old philosophy student.
Packed into a square outside the university library, the crowd fell silent before forming a procession past a remembrance tree, where some mourners laid flowers to add to a growing memorial.
One message read: “Libby, you will be remembered for being one of the kindest people I have ever met. I will never forget the lovely things you said to me in Welly.
"Rest well you beautiful girl.”
Miss Squire whose body was found off Spurn Point last Wednesday seven weeks after going missing, was “an incredible friend to many", Union President Osaro Otobo told the crowd.
They were “united in shock and sadness but also in their determination that Libby will be forever remembered as a member of our student community,” she added.
Vice-chancellor Professor Susan Lea said: “I know I speak for all of us when I say we are absolutely devastated at the news of Libby.
“Our hearts go out to her parents, her siblings, her wider family and they are very much in our thoughts.”
She added: “Here in Hull we are a close knit community. We try to look out for each other, we genuinely care. That is what defines out university and our city and that’s why it is such a difficult time for everybody.”
It came as police leading the investigation into her death told Hull Coroners Court that the inquiry has been declared a “homicide” probe and that a man remains under investigation after being arrested on suspicion of abduction last month.
Miss Squire’s body had been identified by her fingerprints.
Detective Superintendent Martin Smalley, of Humberside Police, said: “Post-mortem forensic investigations are still ongoing. It’s now been declared a homicide investigation.”
Mr Smalley said Miss Squire was refused entry to the Welly nightclub on January 31 and was last seen at around midnight near Haworth Street and Beverley Road, with no sightings after that time.
A man arrested on February 6 “in relation to her kidnap” remains under investigation.
Adjourning the inquest to a later date, coroner Professor Paul Marks said police are not yet in a position to release Miss Squire’s body to her family due to the ongoing investigations.