The jury is still out, but at this early stage, there's good reason to doubt the legitimacy of claims that more than 32 million Twitter passwords are circulating online.
The purported dump went live on Wednesday night on LeakedSource, a site that bills itself as a breach notification service. The post claimed that the 32.88 million Twitter credentials contain plaintext passwords and that of the 15 records LeakedSource members checked, all 15 were found to be valid. Twitter Trust and Info Security Officer Michael Coates has said his team investigated the list, and he remains "confident that our systems have not been breached."
Lending credibility to Coates's claim, Twitter has long used the bcrypt hash function to store hashes. Bcrypt hashes are so slow and computationally costly to crack that it would have required infeasible amounts of time and effort for anyone to decipher the underlying plaintext. As of press time, there were no reports of a mass reset of Twitter users' passwords, either.