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If the user answers "no" to the "cache host key?" prompt, they get asked again at the next rekey. This is a little silly -- PuTTY should remember the host key it didn't save, and only whinge if the key has changed. What PuTTY should do if a different key for the host has turned up in the cache in the meantime is left as an exercise for the reader.
Audit trail for this bug.