This page in a nutshell: Most people who say they're "diffusing conflict" don't really mean it. And some other wreckage thrown in for good measure.
Diffusing conflict
Now and then someone undertakes to "diffuse" a conflict budding somewhere in the project. Probably they really mean they want to defuse the problem, as in "remove its fuse"–like from a bomb–to avoid blow-ups. Diffusing a conflict would be to spread it over a wide area, which is presumably not the intention.
Sometimes people write lengthy posts at WP:ANI, or propose Arbcom cases, or use the images on this page, in hopes of defusing a situation; however, the ensuing drama often means the conflict is diffused instead.
Smoke can be seen diffusing at left. Next time, call the bomb defusing team.
Casting aspirations -- Which turns out (wonderful to say} to actually be a thing: Casting aspiration happens when air is drawn into the molten metal as it is poured in the downsprue.
Conflict is inevitable when dealing with other editors, so knowing how to apply the proper solution is key. When discussion looks like it's about to explode, it's important to diffuse the balm, before things get out of hand.