Using "hashed" makes it sound like the contract itself is hashed. Because the contract uses a hash, but is not itself hashed, I would say the H should stand for "hash".
Secondly, because "locked" applies to both the hash and the time components, I'd say it should be a separate word, rather than "timelocked".
Technically, initialisms can omit minor words like conjunctions (there is no standard either way, to the best of my knowledge), so while I haven't seen it used, a sensible meaning could be "Hash and Time Locked Contract." That's my two cents.
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