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To 'nah dude' is to shut someone down like they’re a broken toaster. No explanation. No mercy. They should know why, or they’re a idiot.
Yo, did you eat my last taco? Nah, dude. I was too busy eating your brain.
Bro, you failed the test? Nah, dude. I failed the test and your mom.
You think you’re cool? Nah, dude. You’re a sad, sweaty version of cool.