Etymology
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poof (n.1)

sound of a puff of breath or air, 1824, imitative.

poof (n.2)

"effeminate man, male homosexual," c. 1850, perhaps a corruption of puff. The Australian extended form poofter is attested from 1910.

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Definitions of poof

poof (n.)
offensive term for a homosexual man;
Synonyms: fagot / faggot / fag / fairy / nance / pansy / queen / queer / poove / pouf
From wordnet.princeton.edu