(sticking with the obliviousness for a moment,) Would they need to store the plaintext password? Hashing every word typed isn't efficient but it's possible to achieve without knowing the plaintext.
Considering how laggy the comment box is on reddit, it makes me wonder if they're not already doing something similar, but client-side in js. I guess it would expose the salt though.
It reminds me of Facebook allowing login even when you've mistyped your password: https://security.stackexchange.com/questions/214814/why-can-...