Earlier quoted context omitted.
In theory, the password doesn't have to be stored at all. I bet it's kept in some sort of job queue, so it might be stored in disk (e.g. Redis AOF), but even that could be avoided. Still, one has to wonder why do it at all, considering the simple alternative of sending a verification email, which was already implemented.
Isn't the motive to get the user's contact lists? If there's an error isn't there a chance that the password leaks out into an error log somewhere?
Probably, yeah.
> If there's an error isn't there a chance that the password leaks out into an error log somewhere?
Sure; there are ways of avoiding that, but who knows what they did.