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My little cousin is called Libby but that is her full name rather than it being a nickname as it is usually used. I dont see any problem with it being used as a name by its self. Ive only ever heard of it eing short for Elizabeth or Elisabeth but i guess Olivia could work(Although i know a lot of people called Olivia nn Livvy). Isabella and Isabelle in their various forms could also strech to having the nickname Libby i guess!!