This is the Festo SmartInversion, a "helium-filled geometric band" that propels itself by constantly flipping inside-out. You'll just have to watch the video of a real-life demonstration to understand. Even Optimus Prime couldn't explain what's going on and he's like the king of all Transformers.
Hit the jump for the dammit, enough with the fancy video cuts, I just wanna see the thing fly, okay?
Thanks to Richard and cursory, who have both gone over the bar on a swingset before and surprisingly didn't turn inside out. They did puke up a lot of Sunny D into the mulch though.