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1.) Racial slur for a white person. While it should be considered just as bad as the n-word it isn't (just like like a man can be sexist but a woman can't). This term is often used to describe white trash. 2.) Opposite of a hacker. Crackers cause mayhem and destruction while hackers try to learn more about how things work, to push the limitations of computers and such, etc. The media doesn't know the difference.
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