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A term referring to an utter failure to achieve a goal or conquer an encounter, most often used while raiding. Taking a Wipe refers to the remaining alive players allowing themselves to be slain so that the encounter will reset and all players can revive (or be resurrected) and make another attempt.
Example usage: "Okay, let's take the wipe and start the fight over. Healers, you can stop sweating bullets to keep / get everybody back up."