Edit: obligatory explanation (thanks mods for squaring me away)…
What you see via the UI isn’t “all that exists”. Unlike Reddit, where everything is a black box, there are a lot more eyeballs who can see “under the hood”. Any instance admin, proper or rogue, gets a ton of information that users won’t normally see. The attached example demonstrates that while users will only see upvote/downvote tallies, admins can see who actually performed those actions.
Edit: To clarify, not just YOUR instance admin gets this info. This is ANY instance admin across the Fediverse.
Looking through the rest of the comments, I think there were already enough explanations.
Making the accusation towards Lemmy that admins can see passwords in clear text is misleading.
It suggests that this is different from other platforms, which it is not. All admins can get your password from/for their respective websites. Either by logging the traffic before the password gets hashed or by modifying the application so that the password gets transferred in plaintext. This applies to Lemmy, Facebook, Google and literally any other service where you enter a password.
It doesnt. you interpret it that way. Thats fine, its your opinion. But please be a little more careful with those accusations.