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It has only been recently that I have even been aware of the connection between "gypped" and "Gypsy". Perhaps because I've always seen it spelled with a "J", I had no idea that the word had racial undertones. Does it really? Was the word originally coined with Gypsies in mind?

Jolenealaska
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It's a pretty commonly used slang word nowadays, which likely won't offend many people. However, its roots are clearly racist. Steer clear and use an alternative.