What is the test for abuse of discretion in a preliminary injunction?

1 An abuse of discretion will be found if the district court: (1) applied incorrect substantive law or an incorrect preliminary injunction standard; (2) based the decision on a clearly erroneous finding of a material fact; or (3) applied an acceptable preliminary injunction standard in a manner that results in an abuse of discretion. Zepeda v. United States INS, 753 F.2d 719, 724 (9th Cir.1983).

2 Although this formulation appears to state two separate tests, "in fact there is only one, best described as a continuum in which the required showing of harm varies inversely with the required showing of meritoriousness." San Diego Comm. Against Registration and the Draft v. Governing Bd., 790 F.2d 1471, 1473 n. 3 (9th Cir.1986).