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If you encounter a `#REF!` error in Excel, it means there's a problem with your formula's cell references. This error could be due to deleting a cell that a formula needs, copying and pasting errors, or issues with links to other files. To fix this, carefully check the formula to ensure all referenced cells and links are correct and active. This step is crucial for data analysts and anyone relying on accurate spreadsheet calculations, helping them maintain data integrity and achieve reliable results.