Polymarket on political events: Is the market truly pricing in new information?

I've been watching some of the Polymarket political event contracts, particularly with an eye on how odds shift with breaking news. My gut feeling is that while there's an initial knee-jerk reaction, the market often seems to over-correct on sensational headlines, then slowly drift back to a more rational probability, rather than truly integrating complex new information in a sophisticated way. It feels less like a hive mind processing data and more like a collective reacting to emotional inputs, especially when you compare the movements to something like $DKNG's intraday swings ($23.315-$24.05 today) which often have clear catalysts. For example, a minor gaffe from a candidate might swing probabilities by several points, only for it to normalize days later, suggesting the initial move was perhaps overblown. Am I missing something in how these markets absorb and discount information, or is the 'wisdom of the crowd' sometimes just the 'impulsiveness of the crowd' when it comes to high-stakes political predictions?