Use 'wipeout' to describe situations where something is utterly removed or deleted. A virus caused a wipeout of all the files on the server.
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Natural Disasters
'Wipeout' often refers to destruction caused by catastrophic events like tsunamis or wildfires. The forest fire resulted in a wipeout of the wildlife habitat.
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Hyperbolic Usage
In casual conversation, 'wipeout' can be exaggerated for minor losses or damage. Spilling coffee on my project was a total wipeout for my morning.