The idea behind it is that you can still continue the feud. In fact, the idea is to make the feud even bigger by adding more people to it. It's issuing an ultimatum: "I'm going to flag you but if you like we can both flag this other guy instead."

So basically FTG and Bernie would still lose money, just half as much, and the second half would get dumped on a third party.

In essence, it provides an escape that can break the cycle of back and forth binary flagging and opens it up to cascade into a domino effect that would be beneficial for the whole platform.