i know i'm a noob here, but erm...actually, they're both correct. according to dictionary d o t c o m (ugh, see, still the noob here),
American Heritage Dictionary hip·pie also hip·py (hĭp'ē) Pronunciation Key
n. pl. hip·pies
although, with wikipedia, if you search hippy it comes up as hippie.
never trust a hippy/hippie
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