I knew someone who would bully online. He seemed to have no sense of boundaries at all. One day, I asked him why he did it. He said, "It's just the internet. None of it is real."
So I returned the favor one day, by posting a photo of us together that he did not want posted. It made him look other than the image that he wanted to portray. He got mad and asked me why I did it, so I replied as you could predict.
"It's just the internet. None of it is real."
Of course, he suddenly didn't see things that way and threatened me with harm if I didn't remove it. This was when I figured out that he was a Pathological Narcissist who views people as playthings in a world that is all about him.
I think that people bully online for a variety of reasons. Maybe they've lost control of their own lives, or they are depressed. Reasons aren't excuses.
I haven't used social networking for three years, and couldn't be happier. I highly recommend leaving it behind.