Password crackers that take the hash of your password, which was stolen, and brute force guess passwords, hash them and compare to the hash of your password. They use dictionaries, leaked passwords, probabilistic rules, and AI/statistical models to prioritize likely guesses first. The good ones work with GPUs and can guess a terrifying numbers of hashes/second. They make human memorable password almost trivial to break. They can guess weak password systems like NTLM at a rate of hundreds of billions/second, often figuring out your password in < 1 second. Password systems like scrypt or Argon2 are vastly better and with a > 15 character password with multiple character sets are almost impossible to crack. If you rely on passwords, make them long, random and multiple character sets. The good passwords are the ones you can't possibly remember.
Yes, if your password hash is stolen, it is likely a password cracker has already figured it out. I just ran a count of the haveibeenpwned stolen password hashes and it now contains 2,048,908,128 unique hashes. Do not depend on passwords that you can remember, they are completely obsolete.