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I think you could call that moderately popular at best. 20+ years ago.

They keep calling it that for the same reason the game got that name: it's a cute term that quickly conveys "giant automotive disaster".

There's some other precedent for the word Carmageddon other than an old game that a lot people haven't heard of.

They're not talking about the game? The game didn't create the term, the incredibly simple adding of the letter C to the word Armageddon?