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Ignorance is the only reason I can think of.

I recall reading that reddit originally didn't hash them because Steve Huffman liked having his password emailed to him when he forgot, but I'm having trouble finding a source for that. It was one of his own comments on reddit I believe.

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Even I recall client or product owner asking for similar requests.

But I wouldn't blame them. These are people that don't know anything about security.

At least person that should have enough dignity to say "this is so badly wrong, I refuse to do it" should be the developer.

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