People being hacked since the last Server Check.

So password hashes are that easily cracked nowadays? Or does he mean that Nexon is using some inferior encryption method.

Blowfish/bcrypt with the correct adaptivity secures passwords damn good, so it would mean the latter.

If they're using SHA or MD5, then they're messing around:
[imgspoiler]http://i.imgur.com/B7iy7.png[/imgspoiler]

See that you have the possibility to use a checksum to check if the data is correctly downloaded? The reason those algorithms are there is because they're able to check whether a file give the correct checksum with those algorithms damn fast. Because of that, there's no problem to try out very many different passwords in a very short amount of time, and with enough computing power, you'll eventually get a hit.