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Someone's downfall is the thing that the person can't seem to overcome. It always gets the best of him and prevents him from achieving his fullest potential.
For example: "Jim's drinking problem was his downfall." Meaning that Jim's drinking problem was the reason his life went down-hill. A "downfall" could be like a "fatal flaw" or in reference to a turn of events that led someone to become worse off than they were before. Jim's drinking problem was the reason he lost his job.
I can tell you this: It's definitely not a compliment. Think about anything you've done recently to this person who said you were their downfall. Okay, now it couldn't have been good. right? This may have been a figure of speech, or you screwed up with this person and you should do something to fix it. That's if you care. If it is too late to do any making up, then maybe you should remove yourself from this person's life. The point is that you are not a positive influence or example in this person's life. You should work on yourself, and find why you are so negative, or this person should use a better choice of words if they were just upset with you and spoke without thinking. Hope it all works out for you! :)
It means that your actions whether good or bad has caused the other persons fall from grace, he/she has been found out.
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