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I don't know what happened in this case, but it doesn't seem very difficult:

1. Configure server to use password authentication and allow logins from anywhere.

2. Send password to user via unencrypted email.

There's a reason that people are uncomfortable receiving passwords via email.

1. Is true of GoGrid. 2. They don't you get the initial passwords from their admin panel.

This is exactly the kind of misinformation campaign that the real hacker would be waging! Blame the victim! I suspect it was ianhawes doing the hacking.

Yup, the fact that he didn't share anything about how the server was hacked is a bit suspicious.