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To be particularly bad, objectionable, or egregious.

I've seen bad grammar, but this takes the cake.

Additional definitions for 'take the cake':

take the cakeTo be especially good or outstanding.
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"take the cake." Phrases.net. STANDS4 LLC, 2018. Web. 20 Feb. 2018. <http://www.phrases.net/phrase/take-the-cake_7310>.

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