[whitepotatoe]

I didn't read all the posts, so this might be in there already, but I think everyone should have the rule written out to show to people so they don't get their panties in a bunch. I wrote this up because I got sick of settling disputes about it. SInce then I have posted it online a few times and a cardroom actually uses it in their official rules now, and it cites "WhitePotatoe" as a reference, which I think is pretty funny.

Dead button – The big blind is posted by the player due for it, and the small blind and button are positioned accordingly, even if this means the small blind or the button is placed in front of an empty seat, giving the same player the privilege of last action on consecutive hands.
All specific situations are outlined below:


When the action is at least 4 handed:

1. When the small blind busts
- the UTG becomes the big blind
- the big blind becomes the small blind
- the button stays the button

2. When the big blind busts
- the UTG becomes the big blind
- the small blind becomes the button
- there is no small blind posted
- the button stays in the same spot for the next hand when blinds return to normal structure


When the action is 3 handed:

1. When the button busts
- the big blind becomes the small blind and gets the button
- the small blind becomes the big blind

2. When the small blind busts
- the big blind becomes the small blind and gets the button
- the button becomes the big blind

3. When the big blind busts
- the small blind stays the small blind and gets the button
- the button becomes the big blind


When both blinds bust:

The first hand
- the UTG becomes the big blind
- the button stays the button
- there is no small blind posted
The next hand
- the current UTG becomes the big blind
- the current big blind (who was the UTG when the blinds busted) becomes the small blind
- the button stays the button until the next hand


When both blinds bust when the action is 4 handed:
- the UTG becomes the big blind
- the button stays the button and becomes the small blind


So you did it correctly, by having B becone the BB and C become the SB.