The process of "capturing" specific data from a successful login, such as the account's rank (e.g., MVP+ on Hypixel), skin, cape status, or transaction history.

The use of these files is almost exclusively associated with the "Alt" market—the unauthorized selling of stolen Minecraft accounts.

In the context of Minecraft , "capture.loli" is a script designed to automate the process of checking lists of usernames and passwords (combolists) against Mojang or Microsoft authentication servers. The name is derived from:

Use a unique password for Minecraft that isn't used on any other website or "leaked" in previous data breaches. If you’d like to know more, I can explain: How credential stuffing works in general.