The Capsule is a simple item that requires a single attack or get thrown, to release the single item found inside. Throwing the capsule at any opponents, delivers 9% damage, though there is a 1-in-8 chance that the Capsule will explode instead, dealing 23% damage and great knockback.
Gallery
Capsule's first early design in Super Smash Flash 2.
Capsule's second early design in Super Smash Flash 2.
Capsule's design during v0.9.
Trivia
An oversight by developers allows the Capsule to release another Capsule and even a Party Ball, something that is not possible the Super Smash Bros. games.