Oz mob baling out - mystifying (11)

I believe the answer is:

bamboozling

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'mystifying' is the definition.
Although both the answer and definition are present participle verbs, I cannot see how they can define each other.

'oz mob baling out' is the wordplay.
'out' indicates anagramming the letters (out can mean wrong or inaccurate).
'oz'+'mob'+'baling'='ozmobbaling'
'ozmobbaling' with letters rearranged gives 'BAMBOOZLING'.

Can you help me to learn more?

(Other definitions for bamboozling that I've seen before include "Hoodwinking" , "Fooling" .)

I've seen this clue in the Sydney Morning Herald.

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