If your master password has enough entropy, you're safe with 1 iteration. It's not a great idea, and what "enough" is can be ambiguous. But if your master password is provably 70 bits of entropy or so, you should be fine.
But it's probably easier to just change your passwords anyway. At this point I wouldn't be suprised if the story gets even worse somehow.
But it's probably easier to just change your passwords anyway. At this point I wouldn't be suprised if the story gets even worse somehow.