A invests in B so B can contract to buy more from A. Isn't this sort of a Ponzi scheme so A can inflate their sales/growth? Shouldn't this be illegal or somet

A invests in B so B can contract to buy more from A. Isn't this sort of a Ponzi scheme so A can inflate their sales/growth? Shouldn't this be illegal or something? This obviously can't continue indefinitely. A co-concern for Wall St. and investors is the fact that B is also borrowing huge piles of cash and basically setting them on fire.