As far as I know, the bit is inserted behind the horse's molars. When the rider pulls the bit, the horse feels pain, which makes him remain under the rider's control. However, some smart horses can somehow remove the bit from the back of their molars and place it between their molars. And then they bite with force, lest the bit slide back to its original position. When this happens, the horse refuses to obey the commands of his rider as no longer does he feel pain.

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