Cybersecurity - Memes

This is not what he meant. If the password is xyz he stores the hash (f*) for xyz and xy. When you change your password to xyb, it compares fxyz to the first saved hash and a truncated fxy to the second saved hash, flagging if you've only changed the last character. The mask length could be arbitrary and there can be many saved hashes at the expense of making password resets slow.