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Originally Posted by PrBlahBlahtson
I had heard that it was because RapidShare has content restrictions, and they can't see what you uploaded if they can't open it.
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I thought that might be the case, but there are so many files without passwords that violate content restrictions that it seems pointless to password the file, since the files can be reported as "abuse" of the terms of agreement and will be removed immedately afterwards. Eitherway, I'm glad most of file hosting websites don't care most of the time anyways.