No, they really did get hacked- or at least someone leaked their accounts. Find yourself here:
Then, someone started cracking the MD5 password hashes and then, with passwords in hand, trying various accounts until they found one with lots of money. There is a $1000 per day withdrawl limit, so in order to get more bitcoins out, they had to crash the market close to 0 first. And that is what happened today.
Started cracking MD5 hashes? You have no idea what you are talking about.
The passwords in the accounts.csv are not MD5.
More likely, a hacker got access to the serer, did the damage he did ( dump BTC on the market from 1 account or something) and figured: while I am here, I might as well spice things up and make a full dump of the users database table.
The two $ it is a clear telltale of the Modular Crypt Format of crypt(3)
It is a Unix MD5 Hash, it is given away by the $1$, the 1 confirms the MD5 algorithm.
Before making statements be sure you know what you are really talking about.
"It is better to remain silent and be thought a fool, than to open your mouth and remove all doubt"