From the screenshots on the steam page they mean the later. Potentially in a more visual novel style, but that is really hard to tell from a picture.
So after a long time do to vacation and no WiFi. I have made and uploaded a suggestion.
Sounds good, you are the on who knows how to run this place.
From my current understanding they couldn't get your password, but they could post from your account.
I honestly have no idea if we do or not. But I am on another instens that doesn't have them, but decided to log everyone out and try to fix it anyway. Just to be on the safe side.
So I figured better to let people on here know, so that the people in charge can decided if actions need to be taken or not, and so we aren't caught with are pants down.
While yes, a lot more places then world got hit. So I figured better safe then sorry.

Lemmy instances got hacked
I just wanted to inform you all that some other instances got hacked during the night.
It appears to have something to do with a vulnerability regarding costume emojis, but I am not sure about the exact details as I am not that knowledge about coding.
I don't know if this instances is affected by this, but even some that are not have taken preventive measurements and loged every one out to renew the login token. As the hack stole it, and used it to spread harmful and disturbing posts.
I can give it a shot, if I get some guidelines. What is it you are looking for?