A. The debate:
Background: There is a dispute amongst Poskim as to the reason behind the morning washing, and consequently there is also a debate as to whether one who did not sleep at night is required to wash his hands in the morning. Furthermore, even according to those Poskim which require the hands to be washed there is a dispute as to whether a blessing is recited upon this washing. The basis of this dispute is with regards to whether the spirit of impurity resides on the hands at night even if one does not sleep and as to whether washing is required even in the event that the spirit of impurity does not reside on one’s hands.
The opinions: The following is the ruling of the Poskim: 1) Some Poskim rule that one who did not sleep at night does not need to wash his hands three times in the morning and rather he is to wash his hands one time prior to Shacharis, without saying a blessing. Admur in his Siddur rules like this opinion. 2) Other Poskim rule that one who did not sleep at night is to wash his hands in the morning three times inconsecutively but without a blessing. This applies even if he guarded his hands, the entire night, from touching covered areas, such as he placed gloves on his hands. Admur in his Shulchan Aruch rules like this opinion. 3) Other Poskim rule that in the morning prior to Shacharis, one is to wash his hands with a blessing if he dirtied his hands at night even if one did not sleep the night before. 4) Other Poskim rule that in the morning prior to Shacharis, one is to wash his hands with a blessing in all cases, even if one did not sleep the night before and even if he did not dirty his hands beforehand.
B. The Chabad custom:
The rulings of Admur differ between his Shulchan Aruch and Siddur, as stated above. Furthermore, the Rebbe Rayatz gave a private directive to Chassidim to follow the fourth opinion, which is not mentioned by Admur either in his Shulchan Aruch or Siddur. There is discussion amongst Rabbanim as to whether this private directive is to be followed by the public or whether they are to follow the final ruling of Admur in the Siddur.
The practical custom: Practically the accepted, widespread, custom amongst Chabad Chassidim is to wash hands with a blessing even if one did not sleep the night before. [One is to wash his hands regularly as he does upon awakening in the morning. The washing and blessing is to be done immediately after Alos. One should use the bathroom prior to washing.]
In a case that one did not sleep at night, there are various opinions and customs relevant regarding whether one is to wash his hands with a blessing. Practically, the current Chabad custom is that [immediately] after Alos he is to [go to the bathroom and] wash hands three times inconsecutively, with a blessing.
Which opinion of Alos is one to follow in the above mentioned law?
One is to be stringent in this regard to follow the opinion which states that Alos begins 72 minutes prior to sunrise.
 This means that he did not sleep sixty breaths worth at night. See “Awaking like a Jew” Chapter 4 Halacha 17 in Q&A
 See Admur Kama 4:13; 4:14; 494:3; Siddur Seder Netila; Michaber and Rama 4:13; M”B 4:30; Ketzos Hashulchan 2:7; Kaf Hachaim 4:47
 Some explain the reason behind the institution of washing hands in the morning is in order to have pure hands for the Shema and morning prayers. [Rosh Brachos 9:23; Rambam Tefilah 4:1; Basra 4:1 as first opinion; not mentioned in Kama 4:1 or Siddur as reason for the blessing.] Others explain that the Sages instituted to wash hands with water only in the morning [and not as a general law that applies prior to all prayers]. Their reason is due to the reason written explicitly in the Zohar, and mentioned in the Talmud, that when a person sleeps impurity resides on him as a result of the ascent of his G-dly soul upon sleeping. Thus, in order to remove this impurity that resides on the hands and become sanctified with G-d’s sanctity, [the Sages instituted that] we pour pure water from a vessel [on to our hands], just like a Kohen which sanctifies his hands from the Kiyur. It is for this reason that they instituted to recite the blessing “That He has sanctified us…”. [Rashba 1:190; Basra 4:1; Siddur [see analysis]; According to Kama 4:1 however the reason for washing with a blessing has nothing to do with impurity and is simply to sanctify oneself like a Kohen prior to prayer being every day we are a new creation and receive a “new” soul to serve Hashem and thus just like a Kohen would wash every day so too we also wash every day.]
 Siddur Seder Netila “If one did not sleep throughout the night, or slept for less than 60 breaths worth, then the spirit of impurity does not reside upon him at all, and thus he does not need to wash his hands three times in the morning. Rather he is to wash his hands one time prior to Shacharis, without saying a blessing.”; Ruling of Ketzos Hashulchan 2:7; Implication of students of Arizal brought in Birkeiy Yosef 4:5 and 46:12; See Kaf Hachaim 4:47; Shaareiy Teshuvah 4:13; Kaf Hachaim ibid rules one may be lenient in a time of need.
Opinion of Arizal: Many Mekubalim, students of the Arizal, write that according to the Arizal the evil spirit does not reside on the body if one did not sleep at night. [Rav Chaim Hakohen, student of Rav Chaim Vital; Derech Chaim; Ramaz; Birkeiy Yosef 4:5; Mikdash Melech Vayishlach; Soles Belula 4:10; Divrei Shalom Shieila 48 in name of Arizal; See Kaf Hachaim 4:47] Others however rule that according to the Arizal one is to wash his hands three times without a blessing. [The Yad Ahron writes in the name of the Arizal that one is required to wash his hands three times even if he did not sleep at night; See Kaf Hachaim 4:47]
 The reason: In the Siddur, Admur rules like the Rashba that the reason for the morning washing is to remove the impurity and sanctify oneself like a Kohen. Now, the Siddur rules [as do many Mekubalim listed above] that the impure spirit does not reside unless one sleeps. Hence, according to the Siddur there is no obligation to wash hands three times with a blessing unless he slept and is hence removing impurity. Thus, one who did not sleep at night is not only exempt from washing with a blessing, but is exempt from washing at all! Nevertheless, before prayer Admur requires the hands to be washed one time to suspect for the opinion of the Rosh, as explains the Bach 4 to be a Lo Pelug. Alternatively, the Shiyurei Bracha of Birkeiy Yosef [4:1] brings the Teruma Chadasha which explains that the night invalidates the previous days washing just like in the Mikdash was the rule with the Kohen. Hence one must always wash his hands before prayer in the morning even if he guarded his hands.
 Admur Kama 4:13 [wash hands without blessing] 4:14 [wash hands three times inconsecutively] and 494:3; Michaber and Rama 4:13; Beis Yosef 4; Kitzur SH”A 7:5; Shaareiy Teshuvah 4:13 and 46:12; Yad Ahron on Beis Yosef; Mamar Mordechai 4:8; Nivei Shalom 4:9; Mahram Shick 1; Kaf Hachaim 4:47
 The reason of ruling of Shulchan Aruch: The reason for this is because perhaps when the sages instituted the blessing to be said every morning for being created, they did not want to differentiate between those which slept and became a new creation and those which did not sleep at all. [Admur 4:13] This reason for washing is in addition to the fact that in Kama 4:14 Admur rules that there is possibility that the spirit of impurity resides on ones hands at night even if he did not sleep. Thus, Admur concludes that it is proper for him to wash his hands in the morning three times inconsecutively, to remove this impurity. This is in addition to the single washing required according to 4:13, as in Kama 4:2-3 Admur rules that a single washing suffices for the morning washing and the three times is only required due to the impure spirit. In conclusion, in Kama there are two reasons to require washing when one did not sleep, while in the Siddur neither reason is accepted.
 Admur Kama 4:13
 Olas Tamid 4:8 and Elya Raba 4:8; Rebbe Akiva Eiger; M”B 4:30; Mahrsham 3:126; The Mamar Mordechai 4:8 and Nivei Shalom 4:9 argue on this ruling. [See Kaf Hachaim 4:49] Piskeiy Teshuvos 4:2 concludes that initially one is to hear the blessing from another person although Bedieved he can follow the M”B and go to the bathroom before Davening. Alternatively, he can sleep a set sleep prior to Davening. [Birchas Habayis 32:5]
 Bach 4, brought and negated in M”A 4:12; Maaseh Rav, brought in M”B 4:30
Opinion of M”B: The M”B 4:30 rules that initially one who did not sleep at night is to go to the bathroom prior to Davening and he may then say a blessing of Netilas Yadayim according to all. [Vetzaruch Iyun as how this would be allowed according to Rashba] Furthermore even if one did not or cannot go to the bathroom the M”B brings the opinions [Bach and Maaseh Rav of Gr”a] that allow saying the blessing and concludes that there are Achronim which agree with this opinion. It thus seems that the M”B accepts the opinion of the Bach as the final Halacha.
 The reason: As the Sages apply a “Lo Pelug” that the blessing is to be said in all cases, even when one did not sleep. The Bach brings a proof that according to the Rosh [who holds the reason of washing is for Prayer] even women and children wash with a blessing even though they are not obligated to pray Shacharis. Thus, we see that once the Sages made their institution to wash in the morning they applied it to all cases. The same logic can also be applied according to the Rashba. [See Halacha 2]
 Based on Shulchan Menachem 1:6 [Shaareiy Halacha Uminhag vol. 1 page 25; Likkutei Sichos 9 p. 276]; Heichal Menachem 2:213; Hiskashrus 931; Shevach Hamoadim p. 240 footnote 7 in name of Rabbanei Anash; Rav Raskin in footnotes on Siddur p. 7
Background: In a letter dated on the 9th of Tishreiy 1949 the Rebbe responded as follows to the question of whether one is to recite the blessing of Al Netilas Yadayim and Elokaiy Neshama in a case that he did not sleep at night: “The public directive follows the ruling in the Siddur of Admur that it is not to be said, although one may hear it from another person who did sleep. (However, the private directive is to say it. This is what I heard from my father-in-law the Rebbe Rayatz).” Although from this letter it remains unclear as to whether a Chassid is to follow the private or public directive, in actuality the custom became to follow the private directive and so rule Rabbanei Anash. [Shevach Hamoadim ibid] Furthermore in a Yechidus recorded in Heichal Menachem ibid the Rebbe told a Chassid that one is to follow the private directive.
 Hiskashrus 931 that so is the custom. Now although washing three times inconsecutively is only required due to the impure spirit, nevertheless perhaps we suspect that the impure spirit resides on the hands even if one did not sleep at night [as suspects Admur in 4:13, unlike Siddur]. However, if we were not to suspect for the impure spirit then one would not be required to wash three times inconsecutively, as Admur rules in the Siddur.
 Based on Admur 4:13 which explicitly writes that those opinions which require washing require it to be done from Alos Hashachar. This is seemingly based on Siddur and 47:7 that the other blessings of Birchas Hashachar may only be said after Alos [in a case that one did not sleep] as this is the time that people wake up. Admur ibid writes that one is to wash hands immediately after Alos.
 Hiskashrus 931; This is not required according to the Bach, although it should be done in order to be able to recite the blessing of Asher Yatzar right after the washing. [See Chapter 8 Halacha 3]
 See Piskeiy Teshuvos 47:16 regarding Birchas Hatorah; Upashut!