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That's it. Invented by a bunch of upper middle class boys in Boston back in the early 1900's. It was popular among them to imitate the bad English used by immigrants and one of them invented OK as the misspelled abbreviation for All Correct
Learned this from Bill Bryson's The Mother Tongue. Very interesting book. Incidentally, I'm about three quarters of the way through his At Home which is also fascinating.
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