From the Super Mario Wiki, the Mario encyclopedia
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The Cap Throw is a new move introduced in Super Mario Odyssey, which involves Mario throwing Cappy at a target by pressing or shaking the . Mario can throw Cappy to perform several actions, including hitting, using, or capturing enemies and objects; collecting coins; and jumping on Cappy to jump higher and farther. It can thus be considered the Odyssey equivalent of Mario's basic attack moves from prior 3D Mario games.
Additionally, Mario can throw Cappy in different ways depending on the buttons pressed and/or how the is shaken. Shaking a after throwing Cappy makes him home in on nearby enemies or objects. Flicking both upwards performs an Upward Throw, allowing Mario to hit enemies and objects above him. Flicking both downwards (in midair) or flicking just one or pressing or during a Ground Pound's impact does a Downward Throw, which lets Mario hit things below him if he is in midair or near a ledge, or lengthen the Cap Throw's range on ground. Shaking both sideways or pressing or while spinning performs a Spin Throw, which hits all around Mario, like the Super Mario Galaxy games' Spin or Tanooki Mario's tail whip.
In Super Smash Bros. Ultimate, Mario's new side taunt, which has him throw Cappy around him, is based on the Cap Throw.