When an event occurs, verbatim memory records an accurate representation. But even as it is doing so, gist memory begins processing the information and determining how it fits into our existing storehouse of knowledge. Verbatim memories generally die away within a day or two, leaving only the gist memory, which records the event as we interpreted it.
Under certain circumstances, this can produce a phenomenon Reyna and her colleagues refer to as “phantom recollection.” She calls this “a powerful form of false alarm” in which gist memory — designed to look for patterns and fill in perceived gaps —creates a vivid but illusory image in our mind.
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I think I have an overactive “gist-izer” I’m able to make predictions / fill in gaps accurately and quick, but I also have a vast store of memories of events that never occured.