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Originally it stood for Laughing Out Loud, but, similar to ‘literally’, over time the acronym has devolved into a basic response that has little meaning. Usually if you don’t know how else to respond you’d respond with ‘lol’. It can sometimes be considered rude to simply reply to something with “lol” and nothing else, as seen in another definition. Think of it like saying ‘mhm’ and nodding with your eyes glazed over in a conversation, and that’s what ‘lol’ is.
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