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I don't think it's because he's dead.
I think it's all got to do with the way he died. If he died because of a heart attack or something, nobody would care.
He died because the Saudi government actually went out of their way to have him killed. He was interrogated, tortured and then killed. His body was then cut up into pieces and removed from the Saudi consulate.
Saudi Arabia are trying to portray themselves as this progressive nation but progressive nations don't hunt down and kill their own people when they don't like what those people say.
That is why people want the event canceled, because the WWE are getting paid by the Saudi government to basically tell the world how great Saudi Arabia is even though it's quite clearly not because they're hunting their people down and killing them (and in this case, also breaking International Law to do so).
If the WWE do go ahead with the event, some people may see it as the WWE advocating those previously mentioned actions.
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