Twitter blog:

When you set a password for your Twitter account, we use technology that masks it so no one at the company can see it. We recently identified a bug that stored passwords unmasked in an internal log. We have fixed the bug, and our investigation shows no indication of breach or misuse by anyone.

And:

We mask passwords through a process called hashing using a function known as bcrypt, which replaces the actual password with a random set of numbers and letters that are stored in Twitter’s system. This allows our systems to validate your account credentials without revealing your password. This is an industry standard.

Due to a bug, passwords were written to an internal log before completing the hashing process. We found this error ourselves, removed the passwords, and are implementing plans to prevent this bug from happening again.

This seems like a pretty major slip-up. The way I’m reading this, somewhere internal to Twitter, your password was stored “unmasked”. And to me, that means in the clear, in plain-text. Am I misreading this?

No matter. Go to Twitter Settings and change your password.