From what I've heard, basically what others said -- Steam will temporarily say that all keys you enter are no good (in some form). It's supposed to last an hour or less, but you don't really get any indication that this lock-out is happening. Also, I'm not sure if it applied to duplicate codes, invalid codes, or both.
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I know what happens, when you type in to many CORRECT codes ^^ After 10 or 15 or so it says "The Key you entered is invalid blabla".. tried again the next day and it worked fine. If you type in WRONG codes, I guess the same thing happens.
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^
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