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The Jiggle pin allowes any trapped air behind the thermostat to pass through. Without this the engine could overheat. The thermostat uses engin coolant to melt a wax capsule and allow coolant to pass. The engin could be at operating temp and the thermostat would not open due to air being in contact with the capsule instead of the actual coolent. This would most likely lead to an overheating engin, and damage.

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