2 hours later…
10:39 PM
We can decrypt with the private key by raising the left side chunk by $x$: $({g^{y_1}}^{x}, g^{x\cdot y_1} \cdot m_1)$
You can think of the left side as the key and the right side as the encrypted message. When you multiply two messages together their keys also get multiplied.
If we were to only multiply the message side, but not the key side, we would get something like: $(g^{y_1}, g^{x y_1 y_2} m_1 m_2)$ (notice that the left side has only $y_1$), then our decryption routine above will break: $$\frac{g^{x y_1 y_2} \cdot m_1}{g^{x y_1}} = g^{y_2} m_1$$ (which can not be decrypted because $y_2$ is unknown, even if you have the private key)
11:33 PM
But you want to read the message, so you need to remove the $h^y$ somehow, and without any additional information that means you must know $y$
But if I were to tell you $y$ right now, then our friend @CodesInChaos will see it and can snoop on our session
Everyone knows $h$, and so anyone who gets $y$ can easily reconstruct $h^y$ and divide it off the ciphertext
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