L8437 Now baring in mind he said "you have to know the encryption that was used, and the hash"
Correct, you have to know both the algorithm and the hash because each algorithm will generate the same input (in this case, the drive's password) differently. There are some ways to see what algorithm the hash is such as looking at it's length or by putting it through tools.
L8437 Why was he able to retrieve the password?
When you encrypt your storage, the hash of the decryption password has to be stored somewhere for the encrypted drive bootloader (in this case the VeraCrypt bootloader) to check for the right password. VeraCrypt and predecessor TrueCrypt have an unusual aversion to using a TPM and won't store anything in a dedicated hardware security module. This means that it is stored on the hard disk if it's a boot drive, or in the VeraCrypt container file if it is anything else.
A threat actor could image the drive (if a boot drive) or copy the container file (if anything else) and then see the hash of the decryption password. After obtaining the hash, the attacker could then try and bruteforce it. Because the hash can essentially be processed elsewhere after known, it can completely bypass any anti-bruteforce mechanisms.
Tools for decrypting VeraCrypt/TrueCrypt volumes exist such as HashCat, or for investigators they would be more inclined to use Passware: https://www.forensicfocus.com/articles/how-to-efficiently-decrypt-truecrypt-veracrypt-encryption-using-passware/ - Passware works a lot better however they are only truly effective if you have imaged the memory of the device or provided a memory dump to the software. VeraCrypt keys are stored in the memory when the device or volume is decrypted.
While the hash is still an encrypted string, it won't be any useful if your PIN/password is weak because the hash is only different when the input is. Salting the input can help produce a different hash for the same original input, however it's not very useful if you also know what the salt is or the mechanisms used to create one.
L8437 does this mean it's all crackable, or is it because of the short password?
VeraCrypt containers are not cracked and neither is the encryption. This scenario would only apply if you used a very weak password. If you used a very long password as they suggest with numbers, letters, symbols etc then this doesn't count to you. For containers with strong passwords a memory image would be required (which requires sophisticated equipment or a threat actor taking the image / device while it was unlocked). Use a secure password and you wont have this problem.
Encryption software that incorporates hardware security such as a TPM would be less susceptible to issues like this as key data would be isolated and stored in a dedicated hardware module. An example is BitLocker in Windows, configured with a startup PIN via group policy, although they would still be vulnerable if your memory was imaged while unlocked.
Lastly, if your device was taken while it was capable of having it's memory imaged you have a lot more to worry about, considering your device would have to be unlocked...
Modern and secure smartphones uses the hardware security module for the encryption process and is much safer like the above comment stated.