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What does it mean, "The Devil is loose in Salem, Mr. Proctor; we have to find where he is hiding!" What does this look like in reality?
It means that there is anger, hatred, lies and revenge among the people in Salem. They are gossiping and pointing the finger at each other, lying and blaming each other for being evil because they are mad at one another for various reasons: jealousy, land disputes, greed, etc.