Some markets swing wildly minute to minute, especially during live sports or election nights. When the price spikes far from where it was sitting and there's no real new information to justify it, you bet on it snapping back toward its recent average. The edge is that panic and overreaction push prices too far, then they revert. Because sometimes the move is real, tight stop-losses are critical so a genuine, information-driven move doesn't run you over.
Markets on Polymarket where mean reversion on volatile markets is the natural play: