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Issuation is a colloquial term, a combination of an issue and a situation. I most cases the issuation may be difficult to resolve.
The issue is that someone is a cheater the situation is the cheater has just gotten caught in the act that is an issuation

You are already late leaving form home for work then you realize you’ve locked your phone, car key and house key in the car...and you NEVER speak to your neighbors that is an issuation
by Lady and Queen April 27, 2009
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