HybridAuth doesn't do all that user creation and logging-in on our site. It only does login to that provider website and given you (as programmer) the info to act on.
If user will always use "Login using Facebook" button instead of In-Portal login form, then no need for password, but I think we need to generate password and send it to user once it is created automatically based on Facebook login data, so he can login using traditional login form too.
For example if I see "Login using Google" button on login form it's first thing I try, since I'm already logged-in to google anyway and I only need to authorize an app once to make it work.
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I've found one things about HybridAuth that makes me unhappy (and I reported it to them already): when you click "Deny" button on facebook login page, then user is returned to HybridAuth EndPoint url and sees PHP Exception instead of nice website message.