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I watched the following YouTube video titled "NBA Top 15 Smartest Plays Ever", but I don't understand what happened in the last one.

Magic Johnson appears to get the rebound then throws the ball out of bounds? How is that "smart"?

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The time remaining in the game was on the order of 3 seconds. By holding the ball in that position or trying to dribble, he risked a foul or a basket against.

By quickly clearing to the far end, the time ran out before the opponent could take possession in a dangerous area, therefore winning the game for his own team.

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