Check out this topic in newbie section:
https://bitcointalksearch.org/topic/btc-ecom-not-able-to-login-warning-they-are-not-helping-me-170592
It is probably not safe to do any trading with BTC-E now, until they sort this out.
EDIT: Now after they "reopened" my account yesterday, I cannot login AGAIN. Bad password..When I try to send a password recovery email, it says "Error: The database server is not available now, so the page cannot be displayed correctly." ...So like I said, ITS YOUR DATABASE/WEBSITE that is having security issues and just not working at all issues...
etc...