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Well, you don't see the CBE in Oregon because Oregon wasn't part of the CSA. However, Southern Oregon/Norther California have tried to seceed and create their own state several times: the last attempt was in 1941, but was put off by WWII. The new state was to be called Jefferson; some locals still refer to the OR/CA border area by this name.
There were also slaveowning Union states: Maryland, for one.
As for it being the flag of renegades: so is Old Glory.
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