The first word means to distroy everything. So you are either clearance sacrificing or winning pieces. The second word just means drawing the attention away from what you are actually doing. So creating multiple threats, using deflection attacks and forks or any other tactic needed so that one of your threats gets to the main goal.
Annihilation vs Distraction, What's the difference?
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Then, the key seems to be that Distraction (a.k.a. Deflection) forces the opponent to make a move he doesn't want to make. I'll try to post some examples. Here Re8+ followed by mate on h7.
Annihilation, on the other hand, is defined as "when a defender is removed." That also describes distraction, so I would add "when a defender is removed" by the capture of the defending piece.
Any tactics whiz kid know?