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if you did a simple "dig www.hackerne.ws CNAME" you would see there is a record for news.ycombinator.com thus I don't steal anything.

there is no even server hosting the domain. nslookup could give you a hint

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Sorry, I don't even know what that means. There should be basic account maintenance functionality anyway though.

When a DNS client gets a CNAME record back, it looks up the other name to get the IP address. So anyone who looks up the address of hackernew.ws will end up connecting to an address for news.ycombinator.com

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