Did the remain campaign point it out?
If I start shouting to millions of people that you've been beating your wife, there's literally nothing you can say to undo this damage.
If you deny it, you'll just bring further attention to the lie.
If you ignore it, I'll keep bringing further attention to the lie.
Politics only works well when everyone follows some basic decorum.
And the scurrilousness of the leaflet was pointed out, too.
But xenophobia sells.