Others in the Twitter thread have claimed to use the same password without any effect. Would like to see some replication before jumping to too many conclusions.
Someone is probably watching closely what this reporter is doing.
I've seen worse user experiences.
But yeah lets just go with the passwords are in plaintext and she's a journalist beijing doesn't like as the only possible outcome. Thats the explanation I'm going to go with when Facebook security reviews blindside my new accounts and close it unilaterally.