> The  question  is,  while  the  relay option set to "Relay for local
> host", how can it by pass my setting and send mail thru SMTP AUTH?

SMTP AUTH is ALWAYS on. There is no way to turn off SMTP AUTH support.
And  this  is  perfectly  fine,  provided  someone  hasn't stolen your
passwords (which seems quite apparent here).

If  you  provide  your  actual  IP  (you can do this off-list if you'd
like),  it'll be pretty easy to see whether your server is screwing up
its  AUTH parsing, or whether (as everyone suspects) your userbase has
simply, yet unfortunately, been compromised.

-Sandy


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