what do they mean when a database is “flattened out” vs. normalized?
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"Flattened out" typically refers to a database where you have one (or a few) very large tables.
"Normalized" refers to whether the data has been organized into well-structured, related tables. This typically reduces duplication of values across rows in a table by pulling the values into a separate table and relating to it by ID.
For details, see Database Normalization.