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There's probably more to such stories. One has to go through the court-martial and the whole shabang. With DD you lose your right to own firearms and vote, any governmental aids/loans and veteran benefits, government employment; it's akin to a felony conviction in civilian court. I doubt they do it often.
Yeah. My dad was pretty belligerent in the military and had a number of infractions (talking back to officers, not showing-up to duty on time, ditching drill, etc.) the straw the broke the camels back was him falling asleep on guard duty twice. All they did was strip him of his rank and discharge him. He still has fully access to all veterans benefits. So I'm pretty sure it takes something pretty serious for a DD.