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Q u o t e:
Ok, so I assume cross realm instancing will up the amount of players running instances. Then by that rationel, I would also assume Blizzard has finaly fixed the problems with to many people running instances on servers?

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Have you continued to run into this issue on a regular basis? While we have seen it happen here and there, overall it has greatly diminished and players haven't had to do the 2 hour instance dance or anything crazy like that.