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From the source code of Wordpress MU:

   // If the stored hash is longer than an MD5, presume the
        // new style phpass portable hash.
        if ( empty($wp_hasher) ) {
                require_once( ABSPATH . 'wp-includes/class-phpass.php');
                // By default, use the portable hash from phpass
                $wp_hasher = new PasswordHash(8, TRUE);
        }



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