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Several hundred people are understood to have decided to stay in the frontline town, despite the lack of gas, electricity and running water.
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Erin Patterson argued her trial was unfair due to seven grounds but three appeal judges dismissed them all.
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End of subsidies and rising prices drive discontent, testing support for Ahmed al-Sharaa's government.
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The alleged scheme used stolen identities to claim US student aid, with Kenyans among those charged.
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The aircraft reportedly took off from the Hindu pilgrimage site of Badrinath on Friday afternoon before losing contact.