It would still be catastrophic if they had access to the hashed passwords of a big number of users. People use weak passwords and they get cracked in no time if

It would still be catastrophic if they had access to the hashed passwords of a big number of users. People use weak passwords and they get cracked in no time if you have just a hash. But as I said before, that also depends on some details about the setup that we don't know from this article alone.