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I have seen this happen on several campuses. I'm thinking in particular of one campus: 3 sororities folded really quickly and one of the middle-tier groups found themselves on the bottom fast. It's been about 20 years now and it's been a continual struggle for that group.
Y'all remember what Erik Conard used to say on here--something about "don't hope for the weenie group to fold because someone has to take their place and your group might be the next weenies?" Those weren't his exact words but those of us who've seen it happen gave it a big "amen".
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