I think it was the security questions on emails being easy to guess / find, resulting in the exploiters being able to access the victims email, from their they got sent the password.
...that can happen anywhere, that doesnt affect blockland and if badspot disabled a very important feature because of this then that is loving stupid, i doubt he did that for that reason (IF he did disable it)
i think you're just having problems, try it again, wait a bit (make sure the email you are using is actually assigned to your account) blablaba