See: http://xmpp.org/rfcs/rfc6120.html#sasl-errors-incorrect-encoding
OF: <challenge xmlns="urn:ietf:params:xml:ns:xmpp-sasl">.......
C: <response xmlns="urn:ietf:params:xml:ns:xmpp-sasl">hahahaha</response>
OF: <failure xmlns="urn:ietf:params:xml:ns:xmpp-sasl"><not-authorized/></failure>
Should be incorrect-encoding failure.
CSH, are you able to resolve this issue?
Openfire returns incorrect-encoding when receiving a SASL auth packet containing a single '='. See https://github.com/igniterealtime/Openfire/pull/132
Note that I was not yet able to build and test the commit.
Confirmed to be fixed