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An allusion is a figure of speech whereby the author refers to a subject matter such as a place, event, or literary work by way of a passing reference. It is up to the reader to make a connection to the subject being mentioned.
In a wider, more informal context, an allusion is a passing or casually short statement indicating broader meaning. It is an incidental mention of something, either directly or by implication, such as In the stock market he met his Waterloo..