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To new site or site with few links, it can be banned (not domain usually, but page which gets links). Most sites don't get affected with this. Usually, they drop when someone does this and come up higher than before after some time. But if people say "it can't hurt" thats not true always. Your domain can also get banned and you must submit for re-inclusion. To people who say someone can't fuck your rankings or domain by do this, please list your domains and I can show you what happens when you site with 100 backlinks get 100,000 bad quality links in a couple hours.
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