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Stuck at understanding how duplicate prevention formula works in Google Sheets

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Many blog posts and educational sites tell us to use =countif($A$2:A2,A2)=1 in the selected range.

However, they don't explain it. And for me it doesn't work and since I can't understand it I can't debug it.

My understanding about Sheets is that $ is for absolute reference. Thus $A$2 means an absolute reference to the A2 cell. For me the formula becomes A2:A2 which is weird.

Can anyone please explain how this formula prevents the duplicates and what is the logic behind it? Thank you.


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