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A person is sponge knocking if they say that they tried to pay a debt to another person, but lied about it.
Person 1 "Man I tried to pay you...knocked on the answer"
Person 2 "Oh yeah? Knocked all night at my door...was in all night, were you knocking on the door with a sponge?" Hence called sponge knocking. "I was accused of sponge knocking...but i really tried"
by AK169 September 17, 2011
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