This command toggles the visibility of the item in your hands. If you do not have an item in your hands, and this setting is enabled, your hands will be hidden.
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This is the only way to use the ToggleGun cheat command. After running the above command, the item in your hands (or if there is no item, your hands) will be hidden. Running this command again will show whatever is in your hands (or your hands) again.