You could eat it, if you can get past the really bad taste and don't mind the lingering nastiness it will leave coating your mouth. Rancid oil is not spoiled by bacteria, it is oxidized. So it won't make you ill in the same way eating bad meat or other rotten food would. But it is not a good idea to do that on a regular basis. But rancid fats taste really bad, so the "can" part of your question is up for interpretation. Technically you can, but whether you will be able to actually swallow it and keep it down, that's another challenge entirely.
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