Google researchers breaks SHA-1. Next 90 days they will release the code that was used to break this encryption.

Are we fucked?

Nope cause I've been using sha256 as my default for two years

It's hashing function, not encryption. There's huge difference, and close to none similarities. Plus it was theoretically known since 2005 and deprecated since 2011, so no surprises here

They spent hundreds of thousands of dollars to run the calculations to be able to do this. This is definitely small fish compared to CloudBleed which was just announced. Worse than HeartBleed from a few years ago by a long shot.

The Shappening part 2.

I think somebody is after more bitcoins.