> If the Linode Manager database only stores the hash, how would they know the password?
Hashes can be turned back into plain text, it is just computationally expensive to do so. Hashing only slows down an attack (and or increases the cost), it doesn't not mitigate one. In particular if the hashes aren't salted then a rainbow table is an extremely effective way of breaking all of the hashes concurrently.
The main method of doing so: Generate the hash for every combination of typable characters up to a given length (e.g. MD5() A-Za-z0-9 & specials up to 8x characters).
This can be mitigated using a more computationally expensive hashing routine (or increasing the work factor on a less computationally expensive one) and salts.
But given enough time OR computing power, all hashes will be broken. AWS makes breaking hashes a lot cheaper as you can bid on spare capacity and perform the operations relatively cheaply.