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To increase the automerge distance, adjust the Double Threshold in 3D view > Tool Shelf (T) > Option > Mesh Options: | Topology, Threshold, Blender 3d
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Clamp OFF - What's the point? Auto-merge vertices toggle and threshold during operation please - User Feedback - Blender Developer Talk
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modeling - Using AutoMerge Editing - things aren't merging, what isn't right? - Blender Stack Exchange
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modeling - Why is vertex snapping with auto merge enabled not merging vertices? - Blender Stack Exchange
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