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It's either leaking externally somewhere, or it's going out the tailpipe. I had a similar issue with my '94 960. I was able to diagnose and pinpoint an external leak by examining the car after shutting down the hot engine. Since the closed cooling system was still under pressure, I could hear a faint hiss where the steam was coming out.
You didn't mention how many miles the car has, but my money would be on a head gasket that's letting go. That's what eventually sent my car to the scrap yard, since it wasn't worth the investment of pulling the head and replacing the head gasket. In my case, the coolant started seeping through the gasket at the rear of the head. The other possibility is that the gasket could allow the coolant to seep into the combustion chamber and there would be no visible sign of external leakage. In this scenario, depending on the volume, you would see some white smoke in the exhaust.
Good luck finding the problem. Hopefully, it's an easily-fixed external leak. BTW, how old is your radiator? They usually last around ten years and then start to fail. Assuming it has a plastic head, have you examined the hose inlet at the top for hair-line cracks? That's rather common for this car. If that's all it is, I have a new, in-the-box, CSF radiator that I never installed in my car.
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