My memory is a bit foggy right now, but I believe that's a second-tier rejection from Fractured Lit. (I could be wrong about the market though, so forgive me if I am.)
A second-tier rejection is a good thing. It means one (or more) slush readers voted your story forward to receive a second reading. It's still a rejection, sure, but it's farther along in the process than most submitters get.
It means you did something right—even if, in the end, it didn't turn out to be the perfect fit.
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