I have some servers with yes, some other with no here (I only discovered this option today).

The advantages of HashKnownHosts no are that I can maintain the known_hosts file more easily.

What are the factual advantages of using HashKnownHosts yes ?

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The known_hosts file represents a small security risk. It contains a convenient list of all servers to which you connect. An attacker who gained access to your password or unencrypted private key would simply need to iterate down the list until your credentials were accepted. Hashing resolves this or at least obfuscates the list.

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This answer seems to have been copied without attribution from vitalvector.com/blog/2009/02/ssh-tip-hash-known-hosts.html – Martey Jan 14 at 13:29
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