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Sure, there's concept creep, hard cases, sloganeering, etc., but I think that, at its core, the concept is reasonably clear: it's an attempt to use the methods of public shaming to turn the target into a social pariah (not just to make them unemployed but unemployable), and in response to a statement that the listener finds offensive. So your case, I think, isn't a paradigm case of cancellation. Neither is the holocaust denial case you describe, but it would be if you used your mighty perch to make your former employee persona non grata.

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