Why are there $ signs in my passwd file?
Crypt based password hashes have several parts separated by $


The hash type, 1 in your case, this stands for MD5-crypt (this is not plain MD5)
The salt, hdhxObPx in your case
The actual hash TYFuTKsB9GGIgo53rF4bi1 in your case
Some schemes have additional parameters, such as a work-factor, but this does not apply to the scheme used in your example.


The MD5-Crypt scheme should be avoided, in favor of modern schemes, such as bcrypt (usually starting with $2a$). Not because MD5 is cryptographically broken, but because it has a constant work-factor, that's too small for the computational power modern attackers can field.

Check out crypt (C) on Wikipedia for further information.