Let's say I flashback an Increasing Vengeance in order to copy a Shock twice. Then, I cast Reverberate from my hand targeting the Increasing Vengeance which in turn will also copy the Shock. Will the new copy of Increasing Vengeance make one copy of the Shock I target or two?
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The new copy of Increasing Vengeance will only make one copy of the Shock - it was never cast, much less cast from your graveyard.
This isn't particularly simple - most of the time, when a spell or ability is copied, most of its characteristics are copied along with it (costs paid, choices made, etc.) - however, in this instance, since the evaluation of whether or not an extra copy is provided on resolution of Increasing Vengeance, that information is not actually copied. If it was phrased different it might actually work - something like "if the flashback cost was paid, copy twice." But phrased the way it is, you get only a single copy.
You get one copy of the
Reasoning, by Comprehensive Rules, emphasis mine:
Since the copy of the Increasing Vengeance wasn't cast, when the copy of Increasing Vengeance resolves, it will fail to see it was cast from the graveyard since it wasn't actually cast, it's a copy.
*Oops. Left original word struck out for entertainment value.
The answer can be divined from the second ruling on Gatherer for Reverberate:
As the Reverberated Increasing Vengeance hasn't been "cast", it certainly hasn't been "cast from the graveyard"... and thus won't copy Shock twice!