I just checked the fuel gauge in my '87 300D Turbo. With a full tank, the needle rises quickly to "full" when the key is turned on - takes less than a second. When the car is powered off, the needle "drifts" down, taking longer to fall back down than it did to rise. Similarly, if I take my spare instrument cluster and with my finger move the fuel gauge needle to "full" and release it, the needle again drifts downward to "empty." The "drift" is probably a result of magnetism generated in the meter movement (I've forgotten most of my E&M, sorry).
The fact that your needle drops so fast that it bounces, to use your words, suggests that something is wrong with your gauge.
Jeremy
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"Buster" in the '95
Our all-Diesel family
1996 E300D (W210) . .338,000 miles Wife's car
2005 E320 CDI . . 113,000 miles My car
Santa Rosa population 176,762 (2022)
Total. . . . . . . . . . . . 627,762
"Oh lord won't you buy me a Mercedes Benz."
-- Janis Joplin, October 1, 1970
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