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thomblake comments on Schelling fences on slippery slopes - Less Wrong
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When the phrase was coined, they were almost certainly referring to the then-recent Italian Hall Disaster, in which 73 people were killed as a direct result of someone falsely shouting "fire".
If you think that can't happen now, substitute in your imagination some other utterance that kills 73 people in short order. Like maybe, going to a police hostage standoff and mimicking the sound of a gunshot.