-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 BJLQCir/2jsWP/7Qpq9hAgxK00/w1Kx2ms19SN9yYQahwYaPNz9SM+0UJ3TOMGGr
 AtTgRJCrzHjm51kKBlzZyg==

<SEC-DOCUMENT>0001011438-08-000402.txt : 20080724
<SEC-HEADER>0001011438-08-000402.hdr.sgml : 20080724
<ACCEPTANCE-DATETIME>20080724170601
ACCESSION NUMBER:		0001011438-08-000402
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080723
FILED AS OF DATE:		20080724
DATE AS OF CHANGE:		20080724

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLUEFLY INC
		CENTRAL INDEX KEY:			0001030896
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
		IRS NUMBER:				133612110
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0403

	BUSINESS ADDRESS:	
		STREET 1:		42 WEST 39TH ST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10018
		BUSINESS PHONE:		2129448000

	MAIL ADDRESS:	
		STREET 1:		42 WEST 39TH ST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10018

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PIVOT RULES INC
		DATE OF NAME CHANGE:	19970305

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SOROS GEORGE
		CENTRAL INDEX KEY:			0000900203
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14498
		FILM NUMBER:		08968771

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		33RD FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10106
		BUSINESS PHONE:		212-262--6

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVE
		STREET 2:		33RD FLR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10106
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edg08-0237_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-07-23</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001030896</issuerCik>
        <issuerName>BLUEFLY INC</issuerName>
        <issuerTradingSymbol>BFLY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000900203</rptOwnerCik>
            <rptOwnerName>SOROS GEORGE</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVE</rptOwnerStreet1>
            <rptOwnerStreet2>33RD FLR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10106</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Convertible Promissory Note</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.65</value>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-07-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionTotalValue>
                    <value>1809480</value>
                </transactionTotalValue>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-07-23</value>
            </exerciseDate>
            <expirationDate>
                <value>2011-07-23</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>495748</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <valueOwnedFollowingTransaction>
                    <value>1809480</value>
                </valueOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Convertible Promissory Note</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.65</value>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-07-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionTotalValue>
                    <value>59220</value>
                </transactionTotalValue>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-07-23</value>
            </exerciseDate>
            <expirationDate>
                <value>2011-07-23</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>16225</value>
                    <footnoteId id="F4"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <valueOwnedFollowingTransaction>
                    <value>59220</value>
                </valueOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">These securities are convertible at the option of the holder (i) into that number of shares of common stock, $0.01
 par value per share, of the issuer equal to the principal amount of the note divided by $3.65, or (ii) into that number of
 equity securities of the issuer sold for cash in a future financing (&quot;Subsequent Securities&quot;) equal to the principal amount
 of the note divided by the lowest price paid by any purchaser of the Subsequent Securities (the &quot;Subsequent Conversion
 Price&quot;).</footnote>
        <footnote id="F2">These securities are convertible at the option of the holder (i) into 495,748 shares of common stock, $0.01 par value per
 share, of the issuer, or (ii) into that number of Subsequent Securities equal to the principal amount of the note
 divided by the Subsequent Conversion Price.</footnote>
        <footnote id="F3">These securities are held for the benefit of Quantum Industrial Partners LDC, an exempted limited duration company formed
 under the laws of the Cayman Islands (&quot;QIP&quot;).  QIH Management Investor, L.P., an investment advisory firm organized as a
 Delaware limited partnership (&quot;QIHMI&quot;), is a minority shareholder of, and is vested with investment discretion with respect
 to portfolio assets held for the account of QIP.  The sole general partner of QIHMI is QIH Management LLC, a Delaware
 limited liability company (&quot;QIH Management&quot;).  Soros Fund Management LLC, a Delaware limited liability company (&quot;SFM&quot;), is
 the sole managing member of QIH Management.  The Reporting Person is the chairman of SFM and, in such capacity, may be
 deemed to have voting and dispositive power over securities held for the benefit of QIP.</footnote>
        <footnote id="F4">These securities are convertible at the option of the holder (i) into 16,225 shares of common stock, $0.01 par value per
 share, of the issuer, or (ii) into that number of Subsequent Securities equal to the principal amount of the note
 divided by the Subsequent Conversion Price.</footnote>
        <footnote id="F5">These securities are held for the benefit of SFM Domestic Investments LLC, a Delaware limited liability company (&quot;SFMD&quot;).
 The Reporting Person may be deemed to have voting and dispositive power over the securities held for the benefit of SFMD.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Jay Schoenfarber, Attorney-in-Fact for George Soros</signatureName>
        <signatureDate>2008-07-24</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----