This is actually very clever. The magician has a box labeled popcorn that is full of unpopped kernals. He springs a few into a hat, bag box etc. He then adds cooking oil to the mix. A little shake and the hat is filled with popcorn.
The oil acutally looks realistic. The popcorn box is made of metal and is designed to release its fill of popcorn into the waiting hat with a simple push of a panel on the rear. Nice props!
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