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Pronounciation: Jay-pegged jpegged (jpegging present tense) is a single word adjective which can be used to describe when an (non-vector) image becomes fuzzy, either from saving the image as a low quality .jpeg file or from repeatedly saving a .jpeg file. Users of Adobe Photoshop would rather save a .jpeg file straight from the .psd file rather than edit the .jpeg file and save over and over again losing the 'quality' of the image resulting in fuzziness.
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