As Dave Gilbert said in the previous comment this is because echoing
input is disabled so someone cannot read your password from behind you.
This is not really a bug, this is expected behavior. To fix this simply
type "stty echo" blindly into the terminal and press enter, and echoing
input will be re-enabled.

** Changed in: ecryptfs-utils (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/755198

Title:
  gnome-terminal stops echoing input

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