>>50569282It converts the item into data, similar to how Pokemon are converted into data via the Modern Poke Ball.
Just like how you can find Item Balls lying around that contain all sorts of ridiculous shit that shouldn't fit in something the relative size of a Poke Ball.
This is ALSO why you can't have your Pokemon hold items in PLA; Poke Balls aren't advanced enough yet for it, so it'd be a risky maneuver to give your Pokemon an item and then try to put it in a Poke Ball when the item won't shrink.