We also use "bem capaz", which literally means "very capable", to mean "of course not!"
People from the rest of the country, trying to make sense of what to their ears sounds like a sentence fragment, often assume it to be a shortening of "é bem capaz que sim", which means "it's quite possible that yes", which means the exact opposite!
@hisham_hm Wait a minute, "capaz que não" means "yes" :P
@hisham_hm I guess the closest equivalent in rest-of-Brazil Portuguese is "até parece" (though the two expressions are not used in exactly the same situations)
@vbuaraujo the more I think about it, the more confused I get :)
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