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Situational irony is when information is hidden from the audience and other characters in the story. In Richard Cory, both the townspeople and the audience are unaware of how unhappy Richard Cory is until he takes his own life. The audience experiences the situation through the townspeople's perspective. The townspeople are jealous of Richard Cory because he seems to have everything. They don't realize that despire his wealth and prosperity he is unsatisfied with life. When the speaker very bluntly says that he put a bullet through his head, it is shocking to the audience and townspeople, creating situational irony.
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