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[UPDATE after the jump.] In a potential development that flies in the face of the prevailing feelings of Cautious Optimism sweeping the town, Radar reports that Graydon Carter is canceling Hollywood's favorite post-awards-ceremony orgy, the Vanity Fair Oscar party. (Which, you no doubt recall, was relocated to the CAA cafeteria to better facilitate the agency's poaching of the winners.)

Did Carter not hear Academy president Sid Ganis' luncheon proclamation that his show would go on, even in the now seemingly unlikely event he'd have to mow down every writer on that picket line with his limousine to reach the Kodak Theatre? We hope for the sake of the entire industry that this report proves false, for everyone's suffered far too much already to have to deal with the possibility that a few hundred of Carter's best showbiz friends might have to make alternate plans on the most important night of the year.

UPDATE: People.com has the heartbreaking statement: "After much consideration, and in support of the writers and everyone else affected by this strike, we have decided that this is not the appropriate year to hold our annual Oscar party. We want to congratulate all of this year's nominees and we look forward to hosting our 15th Oscar party next year." We feel it's not too soon to start praying that Elton John finds the inner strength to continue on with his annual party plans despite this tragic blow to Hollywood's awards-season morale.