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“…or they were trying to bring back the old days that were changed in Europe. This rational, litvish approach was a reaction to the Sabbateans. However, Sefardim were into kabbalah throughout the ages.
No, the above is a distortion. The Gaon and his talmidim learned Kabbalah. The Talmidei Chachamim that where holding by it among other Chassidim learned Kabbalah. Chabbad’s chidush was what amounts to a “Kabbalah l’am” approach. This was certainly an innovation. They themselves acknowledge this.