I'm pretty sure that this is genuine, but I'm not sure that it makes that much difference to me if it's not. Rule #3 for the August Van Zorn Prize for the Weird Short Story reads as follows:
3) The judges are not really looking forward to reading elaborate, detailed descriptions of gore, effluvia, entrails, eyeballs on forks, torture, etc. Maybe a little is scarier than a lot.
There should be more contests that have rules like this.
No, no, no, I mean outside of academia...

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