It's when the defense decides to keep all of its players tight together. The rule of thumb is that the perimeter defenders (up top or on the wings) never go past the three point line unless the player with the ball is right on it. This defense is effective against a team that wants to get the ball inside to score, whether that's passing it to a post player (this defense makes it easy for the other players to collapse on him) or to prevent drives (you're all bunched closer so the driving lanes are small). The weakness of this defense is that if the other team has a good three-point shooter, he can sit a couple feet behind the three-point line and shoot freely. This defense is usually used in a zone.
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