Happened to me several months ago, apparently someone guessed my password or brute forced it. Most likely my fault for having a relatively simple password at the time.
I logged into Hotmail and it told me my account was frozen due to sending spam mail, which I suppose was the reason for getting into my account in the first place.
It had me enter a phone number for verification and a code I had to enter, after that I could change my password and now it's much stronger with some numbers+characters at the end.
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