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I'm not sure you may call that a nickname. It's just one of the many forms every russian name has. And yes, we basicaly call each other by names. :) The convinience is you can chose the form of name...

That's one of the very popular poems by famous soviet children's writer Agnia Barto.
Some of these poems gave birth to hundreds of parodies, most of which are rude or indecent.

Наша Таня громко...