For an edge case, consider an election with 3 factions: socialists, libertarians, and fascists. There is also a 4th candidate, a boring status quo moderate, running. Imagine the populace is split 1/3 between the first 3 factions as their 1st choice, but everyone selects boring status quo moderates as their 2nd choice, because everyone in the first 3 factions hates the other ideologies.
The boring status quo moderates get eliminated in round 1, and eventually 1 of the 3 extremes will win, resulting in 2/3 of the country being very angry. Not ideal.
Obviously this is just an unrealistic edge case, but it demonstrates the effect.