It does this through the cell development process of transdifferentiation.
Scientists believe the cycle can repeat indefinitely, rendering it potentially immortal.

While most members of the jellyfish family usually die after propagating, the Turritopsis nutricula has developed the unique ability to return to a polyp state.
Having stumbled upon the font of eternal youth, this tiny creature which is just 5mm long is the focus of many intricate studies by marine biologists and geneticists to see exactly how it manages to literally reverse its aging process.