Devastating Setback is a Spell.
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This is a Choose One effect.
The debuff affects your units in play as well as your opponent's.
As of patch 1.28 , Devastating Setback's cost was reduced from 4 to 3 power, and its -2/-2 effect is no longer permanent. The goal of this change was to push more decks to use it as a way to interact early against aggro.