The 'spring' itself doesnt move, but as its compresses, the 'compressed' spring attempts to rotate around the shock in order to try and balalnce itself out.
As the bottom of the spring cannot rotate around, the top must do so.
Without the grease, the top binds with the rubber and makes a not so nice sound.
With the grease it acn be free to rotate around.
I think its in the order of like 1-2mm or something very small.
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