Did it scan the file system? Or did users hand over the passwords as part of the application? Because everything else makes it sound like the latter.
The site is called "Have I Been Pwned", thus the cutesy name of the flag...
The site is called "Have I Been Pwned", thus the cutesy name of the flag...
The designer felt that "secure" included "is this password already published, online, in a known database breach", which is not an unreasonable interpretation.
The documentation has been clarified. There was a a feature flag. Calling this malicious is just absurd flame-bait.
It wasn't malicious but it wasn't expected.