If your computer is "hacked", it means that another person has infiltrated your computer through some means. (Usually over the internet.) Depending on how your computer was hacked, hackers may simply gain access to your shared files or gain the ability to use your computer as a proxy. However, if they gained complete control of your computer through the use of a virus they may be able to steal passwords, track your keystrokes, and do generally anything they want with your computer.
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