I solved the problem by checking to see if the password object is defined. Like this:

else {
    if ($query->param('password')) {
        $pwd = $query->param('password');
        if ($pwd eq "suckmydick") {
            $pwd = 1;
                    &form;
                } else {
            &get_password();
        }
    } else {
        &get_password();
    }
}
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