The plates on the outside of the fold pull apart from one another and the plates on the inside are forced to ride over their neighbours. The strip takes a sharp line across its full width at that point, and the mirror surface is interrupted by a visible crease.
Unlike a kink in a linked chain, this does not settle out. The plates that were bent stay bent, and although a jeweller can flatten the band and work the plates back towards their positions, the crease remains as a line where the highlight breaks.
If the fold is severe the usual repair is to cut out the damaged section, which shortens the bracelet, or to replace the band and reuse the clasp. A single mild crease is often lived with, since it is only visible when the light crosses it.