I agree with elroy that #2 makes sense, but I want to point out that it would be a rare context in which sentence #1's "I wish they hurried up" could work at all. "I wish they had hurried up" or even "I wish they would have hurried up" could work in other contexts. I don't think "I wish they hurried up" would sound quite right in any context. Maybe a humorous one. Of course, "hurry up" itself is somewhat informal...