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Deregistering DOES wipe out all content from your Kindle.
I just read this thread and decided to deregister and register to another account. It was stupid of me for not backing up my Kindle but I lost all my content. Books, highlights, bookmarks, and book progress. I have all my books in Calibre but this is still very annoying.
I just wanted to report back so that no one else makes the same mistake. If in doubt, make a backup of the whole device.
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