I think what I find most unique about the Hydra Project is that it uses the same developmental mentality of open source (more eyes == less holes) to create a project solely aimed at piracy.
Real encryption standards all have their entire source published. The basis of this idea is that “security through obscurity“ is a fallacy. Simply because someone doesn’t know your password is “lovemydog” does not make it a good password. In fact, it leads you to an entirely false sense of security. In this same way, THP is making the development of the project open so that no one tries to make it secure by saying “well, no one knows XYZ, so they couldn’t possibly break in!”
I wonder how long the **AA will let this project live on Google code and, when they begin file papers (as they are so good at), if Google will ask that the project be removed from their system.