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Ever seen a lizard with a piece of its tail missing? There's a reason why. They break off.
Don't pick up your lizard by the tail. Not only is it painful, but in some species, you can actually break it off. This evolved as a defense mechanism on the lizard's part, to leave a predator chewing on a piece of the lizard instead of the whole thing. The break will heal, but it's no fun for the lizard and it never does grow back as nicely colored as before.