Oh-- I'm sorry to hear that. I hope it's not the same for others. It worked fine for me. I'm guessing it is because of Hiveblog's proxy which redirects images through its site. It must have a copy of the files uploaded.
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It's no big deal and probably won't be an issue for others. I know some of my earliest posts were made before Steem even had an image server! Yeah, I'm pretty sure Steem cached the images eventually, Hive was able to copy them over, but pulling straight from my original markdown the image links are currently invalid.