*E. coli* is a bacteria that thrives in the guts of mammals. Not all *E. coli* cause food poisoning, only certain varieties do, and the variety people have in their guts are harmless to people (so long as they stay in the gut).
There are a few different kinds of *E. coli* that make people sick: *E. coli* O157 and *E. coli* O104, for instance, make a toxin that breaks open blood vessels in the gut and causes pain, bleeding, and diarrhea. There are others that cause diarrhea by irritating the gut or sticking to the walls of the gut.
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