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It's definately not a myth that too many links can hurt your ranking. The definition of what a lot of links is differs though. Many people get 100+ links without a problem, if you are getting 1000+ then common sense shows the search engine something is wrong, because you can't logically get thousands on links on the same day or in the same week. The solution is to add links over time, not 1000's in one go.
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