On 7/29/2017, all hacked Vitas on 3.60 spoofing the latest firmware (3.65) were blocked from console activation. This is particularly odd because the PSN passphrase did not change in 3.65. Additionally with the release of ensō added to the confusion of what happened. Here is the result of a preliminary investigation of the situation.
Upon game activation, the Vita displays an dialog that shows the error number E-80558325. This error number is used in SceNpKdc, which is found in vs0:external/np_kdc.suprx. The error code itself is created when the activation response is received:
v5 = v45 | 0x80558300;
Here, v5 is the return code and v45 is the string error code from the server converted to a number. The request made to Sony's server looks like the following