I've come across several websites pushing their ranking with auction domains 301s, dozens of them,
Despite the fluctuations, they do rank quite well often, despite having a garbage website overall (content, design...), and the ROI is certainly good,
And no, they're not within the BH niches as Adult, Casino, etc...
The thing is, this falls under spam, and it won't as well in majority of the cases, especially if you're spamming some new website/domain with this,
It's one of the practices that could work in several cases, and not something to rely on for the long run or/and the majority of cases,
Basically good for churn & burn, testing, etc...
And the only major advantage is that the redirecting domains won't mainly get penalized because of that, it's usually the main domain