14.04 Login incorrect ('Retry' placeholder in password field)

it happened to my system after hard shutdown.
Now on login screen I see placeholder 'Retry' in the password field, I can't type anything.

Login screen snapshot:

Then I decided to watch what terminal says (ctrl+alt+f1):

terminal snapshot:

Proper login doesn't work at all. Always get "login incorrect".

What is that? Some broken auth package?