Found this comment on Will's SBMS video from someone who appears to know and it jibes with my more limited understanding:Can someone explain how the SBMS balances the cells, vs a active/passive BMS? I think I have an understanding how a regular BMS does this, but not sure how the SBMS does it...
"The SBMS0 is unique in that it balances when two criteria are met. 1. there has to be a cell difference of 0.01v or more, 2. there has to be a charge or discharge current occurring. This means a: you don't have to cram the batteries full to get balancing to start and b: then it only happens while the batts are at their peak voltage. This allows the SBMS0 to spend a fair amount of time balancing so the 200mA current is plenty and there is very little heat generated so no heat sink is required on the SBMS0. Seeing as balancing starts with a 0.01v (hundredth) difference the cells end up being balanced to within less than 1% of each other. The cell balancing activity is displayed on the screen as it is happening."
... only thing I'd add is that it does this all the time (whether charging or discharging) as long as criteria 1&2 are met.