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Basically relies on the fact that a blob (or any shape) of water near the surface of the water, sea, lake, cup of water etc, does not sink. The reason is that the pressure increases as you go deeper, and this exactly balances the weight (that's where the pressure comes from in the first place). When you put a ship in water, it goes lower and lower until the weight of the ship exactly equals the weight of the water it has shoved out of the way. Hence the phrase "upthrust equals the weight of water displaced".

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