Alternative 1.
Set up your .hosts (Windows) or etc/hosts file to point a live domain to your localhost IP. such as:
127.0.0.1 xyz.com
where xyz.com is your real domain.
Alternative 2.
Also, the article gives the tip to alternatively use a URL shortener service. Shorten your local URL and provide the result as callback.
Alternative 3.
Furthermore, it seems that it works to provide for example http://127.0.0.1:8080
as callback to Twitter, instead of http://localhost:8080
.
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