WoW man! Factions 1.6.9.5 is very outdated ans simply will not work with 1.8! For 1.8 get factions 2.7.5 or 2.8.0 (latest) here: http://dev.bukkit.org/bukkit-plugins/factions/files/
I can't see how that's possible. Factions 1.6.9.5 is for CB 1.5.2-R0.1 and CB 1.5.1-R0.2 servers. Just get factions 2.8.0 for your 1.8 server and you'll be good !
You could always check with the Massive Core Devs to see if there is a way to unlock that- or request it back in. OR they may even make a plugin to bring that back