"How would you interpret that?"
Not that the video alone is alot to go by but, it appears to be a stereotypy. Without looking up the official definition, a "stereotypy" is an invariant and repeated movement/pattern that does not accomplish anything. It commonly manifests in the more intelligent species when their behaviors or behavioral needs are thwarted. For example, (social attachment in parrots is a need) a parrot confined to it's cage or one spot that is repeatedly calling to get to or to be attended by it's owners (or bonded person). When that person does not comply, as a release of pent up energy/frustration, it begins climbing the same circular pattern inside it's cage. This behavior can then become neurologically encoded in the brain. In extreme cases of deprivation repetition is a result of scarring of brain tissue such as the basal ganglia.
Therefore, a stereotypy or other PTSD type behaviors (such as feather destructive behaviors) can persist even though the living conditions of that animal have improved from those which caused the stereotypy.
It should also be noted that the idea of "flooding," or trauma learning, can and often takes place unintentionally - in addition to the way it's defined above. A captive animal often doesn't have choices and seldom understands what is happening to it, around it, etc. Remember that in captivity, one way or the other, we are "subjecting" them to what we want, and within the limits of what we know. We often cannot perceive what they will react to and how. So although most owners would claim to not use flooding or dominance methods, once we define those terms a little more realistically (broader, in other words) we find that we do to some extent. As in being caged and unable to flee a feared/unknown object. Flooding has grey areas that overlap with "habituation." And "dominance" is vaguely defined in science. It can involve a social hierarchy or simply one interaction between conspecifics.
The above illustrate the complexity of parrots and the contrast between their natural lives and the ones we've brought them into.