No, they didn't come close to "hacking recaptcha":
Update – Just to be perfectly clear, anon didn’t hack reCAPTCHA. It did exactly what it was supposed to do. It shut down the auto voters instantly and effectively. The only option left after Time added reCAPTCHA to the poll was a brute force attack. Ben Maurer, (chief engineer on reCAPTCHA) comments on the hack: “reCAPTCHA put up a hard to break barrier that forced the attackers to spend hundreds of hours to obtain a relatively small number of votes. reCAPTCHA prevented numerous would-be attackers from engaging in an attack. In any high-profile system, it’s important to implement reCAPTCHA as part of a larger defense-in-depth strategy”. As Dr. von Ahn points out “had Time used reCAPTCHA from the beginning, this would have never happened — anon submitted tens of millions of votes before Time added reCAPTCHA, but they were only able to submit ~200k afterwards. And to do this, they had to resort to typing the CAPTCHAs by hand!” One thing that Time inc. did that made it much easier for the anonymous hack was to allow leave the door open for cross-site request forgeries which allowed anon to create a streamlined poll that never had to fetch data from Time.com.
While not completely cracking it, didn't they figure out that they could skip one of the two words, and which word to skip effectively halving the time it takes to solve the captcha?
Update – Just to be perfectly clear, anon didn’t hack reCAPTCHA. It did exactly what it was supposed to do. It shut down the auto voters instantly and effectively. The only option left after Time added reCAPTCHA to the poll was a brute force attack. Ben Maurer, (chief engineer on reCAPTCHA) comments on the hack: “reCAPTCHA put up a hard to break barrier that forced the attackers to spend hundreds of hours to obtain a relatively small number of votes. reCAPTCHA prevented numerous would-be attackers from engaging in an attack. In any high-profile system, it’s important to implement reCAPTCHA as part of a larger defense-in-depth strategy”. As Dr. von Ahn points out “had Time used reCAPTCHA from the beginning, this would have never happened — anon submitted tens of millions of votes before Time added reCAPTCHA, but they were only able to submit ~200k afterwards. And to do this, they had to resort to typing the CAPTCHAs by hand!” One thing that Time inc. did that made it much easier for the anonymous hack was to allow leave the door open for cross-site request forgeries which allowed anon to create a streamlined poll that never had to fetch data from Time.com.