Hall of Shame: Office 365

When testing the brand-new Microsoft Office 365, I ran accoss this error:

All I can say: Why? Why would you restrict password length?  This is a new product, so you cannot use the old "We need to be compatible with legacy accounts" on me here.

There is no good reason to do this. Especially when you are securely hashing my password. 
You are storing the password securely, right?  Right?