Clumps in hot star winds can originate from shock compression due to the line driven instability. One-dimensional hydrodynamic simulations reveal a radial wind structure consisting of highly compressed shells separated by voids, and colliding with fast clouds. Two-dimensional simulations are still largely missing, despite first attempts. Clumpiness dramatically affects the radiative transfer and thus all wind diagnostics in the UV, optical, and in X-rays. The microturbulence approximation applied hitherto is currently superseded by a more sophisticated radiative transfer in stochastic media. Besides clumps, i.e. jumps in the density stratification, so-called kinks in the velocity law, i.e. jumps in dv/dr, play an eminent role in hot star winds. Kinks are a new type of radiative-acoustic shock, and propagate at super-Abbottic speed.