The design of the item is clearly based on the Hocotate Ship from Pikmin 2, and its behaviour seems to be the similar to that of End of Day, Olimar's Final Smash. However, there is also an item with identical functionality from Kid Icarus: Uprising - the Boom Rocket.
When thrown, it will wait 3 seconds, or until it is attacked, before ascending offscreen into the sky, damaging and dragging any touching enemies with it for a potential KO, then crash down (a random time after 5 seconds) after its launch. If it receives enough damage before it flies off-screen, it will explode and damage anyone nearby. However, when it detonates on re-entry the resulting explosion will not harm the person who activated it. The crash landing also has a meteor effect on any opponent who makes contact with it. It's also possible to push the bomb away with wind and have it land in another spot though it may just pass through solid ground.