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It literally means adding the final piece that is needed to finish creating a circle.

The term is most commonly used to mean "giving someone the last piece of information that they needed in order to completely understand something." Usually, they would have been waiting for this information from you, because you had already given them some incomplete information, and they were expecting you to give them the last remaining pieces of information needed to make their knowledge of the subject complete.

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Q: What do closing the loop mean?
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