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Kernest

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never heard of it before, but it could have something to do with leaders max command limit. try putting major general in charge of 2 or more divisions and then fight with them.
 

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GroFAZ
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It might just be a non-functional hold-over from previous games using the same EU-2 engine... those earlier games (such as EU-2 itself) did indeed have troop limits, which heavily penalized you for building too many military units.

An example would be the "Button_Send_Diplomat" definition, still present in the buttons.txt file... that functionality hasn't existed in any of the HOI games, but it's still defined in the core files.
 
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It might just be a non-functional hold-over from previous games using the same EU-2 engine... those earlier games (such as EU-2 itself) did indeed have troop limits, which heavily penalized you for building too many military units.

An example would be the "Button_Send_Diplomat" definition, still present in the buttons.txt file... that functionality hasn't existed in any of the HOI games, but it's still defined in the core files.
what does this mean
 

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GroFAZ
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what does this mean
Not sure what your question means.

HOI-2 was made with the same game engine that was originally developed for the Europa Universalis series of games. That engine was later ADAPTED to make HOI-1 and HOI-2.

That means that there are several bits of code still kicking around in the game engine that have nothing whatsoever to do with HOI-2, and play no role at all in the HOI-2 game. They are there, not because they are part of the HOI-2 game, but because they are part of the EU-2 game engine, which was later adapted to run this game.

Think of them as part of HOI-2's "evolutionary baggage"... like the reason that men have nipples: not because they serve any purpose, but because they are part of the basic "Human" design (ie: an unused part of the "game engine").

Note that the upcoming HOI-3 game will be using a completely different engine... the 3-D Clausewitz engine written for EU-3 (not the 2-D EU-2 engine).

Short answer: the "nolimits" command does nothing at all... in THIS game.