Definition
The act of taking a book into the bathroom for extended reading during your business, thereby rendering it socially contaminated—as immortalized in that Seinfeld episode. Once a book has been flagged, it enters a permanent state of bathroom association that can never be undone.
Example Usage
I wanted to borrow his copy of Dune, but then I saw it on the back of his toilet—totally flagged, no thanks.
Source: Urban Dictionary (https://www.urbandictionary.com/define.php?term=flagged&defid=17700)
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always and totally forever...