<SUBMISSION>
<ACCESSION-NUMBER>0001011438-06-000170
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20060217
<FILING-DATE>20060222
<DATE-OF-FILING-DATE-CHANGE>20060222
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>BLUEFLY INC
<CIK>0001030896
<ASSIGNED-SIC>5961
<IRS-NUMBER>133612110
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>42 WEST 39TH ST
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
<PHONE>2129448000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>42 WEST 39TH ST
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>PIVOT RULES INC
<DATE-CHANGED>19970305
</FORMER-COMPANY>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>SOROS GEORGE
<CIK>0000900203
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>001-14498
<FILM-NUMBER>06637317
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>888 SEVENTH AVENUE
<STREET2>33RD FLOOR
<CITY>NEW YORK
<STATE>NY
<ZIP>10106
<PHONE>212-262--6
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>888 SEVENTH AVE
<STREET2>33RD FLR
<CITY>NEW YORK
<STATE>NY
<ZIP>10106
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edg06-0064_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-02-17</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>Option to Purchase Common Stock (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.14</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-02-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-02-17</value>
            </exerciseDate>
            <expirationDate>
                <value>2016-02-17</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>20000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>20000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents director options to purchase 10,000 shares of common stock issued to Neal Moszkowski and director options to
 purchase 10,000 shares of common stock issued to David Wassong. Mr. Moszkowski serves as an advisor to QIP and Mr. Wassong
 is an employee of SFM (as defined below).</footnote>
        <footnote id="F2">These options 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 account of QIP.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Jay Schoenfarber as Attorney-in-fact</signatureName>
        <signatureDate>2006-02-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
