I understand how Mega's encryption works. For a quick summary of all those in the future looking for an answer on this... here is how it works:
Upon first signing up for an account you make a username and password. It also generates a symmetric key which is used to encrypt your files and a RSA key pair to share secrets securely when files are sent to other peoples "inboxes". Once the client has both these, the symmetric key is encrypted with your password and uploaded to the server. This way only someone with your password can decrypt your symmetrical key and then decrypt your files. I'll leave it at this for now as thats all that is relevant to my question.
If my symmetric key is encrypted with my password, no matter how secure my key is would it not still be as weak as the hashing function they use to store my password on their server? This ties into my second question, do they even store a hash of my password? I'm thinking along the lines of no, as it would weaken the encryption hugely, but Mega still needs to be able to determine if your login details are correct. How can they do this without compromising their encryption?
This may be the wrong place for asking this, so please move it if appropriate.