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The sources of conflict between the Sioux Indians and the federal government that led to the Wounded Knee Massacre were violations of treaties with the Sioux, an increase in the number of settlers, the spread of the ghost dance, and the near extinction of the buffalo.
Wounded Knee was located in Southwest Dakota, in an Indian Reservation called Pine Ridge. It was the place of the 1890 massacre when the US Army killed 150 Indians. This terrible incident, marked as one of the worst of those years, ended the conflicts between the Sioux and the federal government.