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Research is ongoing, but one leading hypothesis holds that Hanny's Voorwerp is a small galaxy that acts like a large reflection nebula, showing the reflected light of a bright quasar event that happened in the center of IC 2497 about 100,000 years ago.
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Add to that 100,000 years the length of time the light has been travelling; about 700 million years. This 'voorwerp' is very distant in both time and space.