A form of "remote synchronization" was recently described, wherein amplitude fluctuations across a ring of non-identical, non-linear electronic oscillators become entrained into spatially-structured patterns. According to linear models and mutual information, synchronization and causality dip at a certain distance, then recover before eventually fading. Here, the underlying mechanism is finally elucidated through novel experiments and simulations. The system non-linearity is found to have a dual role: it supports chaotic dynamics, and it enables the energy exchange between the lower and higher sidebands of a predominant frequency. This frequency acts as carrier signal in an arrangement resembling standard amplitude modulation, wherein the l...