Reset password doesn't work

I just made a new user. I logged in, logged out.
Used Admin to reset password.
I logged in with that regular user using the same password.

What does “reset” mean in:
Administrator can reset password for a user in "System Admin" page.

What does it re set to? It either seems to set it to the original password, or it doesn’t work.

It would be much better if Admin could change Users’ passwords even when email server is down.

Is there a way to change users’ passwords using cli scripts like we can do with the admin account?