This is not a hash. It is a reversible encryption, encrypted and decrypted using a key that is in $SPLUNK_HOME/etc/auth/splunk.secret. It is not possible to use a one-way hash on this password, since the purpose of it is to be accessible to the Splunk process to use. I believe the encryption used is Blowfish or AES, for what it's worth.
You should treat this config just as you would treat the SSL private key, and make sure it is not readable by unauthorized users. The encryption here is suitable only for preventing casual inspection. Anyone with access to the Splunk server would be able to get this password, the decryption key, and the secret key.
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