Inverse Agonist
An inverse agonist reduces a receptor's signalling below its unstimulated baseline by stabilising the inactive conformation, which is only possible where the receptor is active without any ligand.
Many receptors flicker between inactive and active shapes on their own, producing a basal signal with no ligand bound at all. This is constitutive activity, and it creates room for a third category of ligand. A neutral antagonist binds without shifting that equilibrium and simply excludes other ligands. An inverse agonist binds preferentially to the inactive conformation, pulling the population towards it and driving the signal below baseline, which amounts to negative intrinsic efficacy.
The endogenous examples are the most instructive. Agouti-related peptide acts as an inverse agonist at the melanocortin-4 receptor, actively suppressing a tonically active appetite-restraining signal rather than merely displacing the melanocyte-stimulating hormones. Pharmacologically, a large proportion of the drugs still catalogued as antihistamines are inverse agonists at histamine H1 or H2 receptors. Constitutive activity also matters in disease: activating mutations in the thyroid-stimulating hormone receptor drive autonomously functioning thyroid nodules with no hormonal stimulus behind them.
The distinction changes what you should expect on withdrawal and at baseline. Where tone is high, an inverse agonist produces a larger effect than a neutral antagonist would, and prolonged use tends to upregulate the receptor, setting up rebound when the drug stops. Where there is no constitutive activity, the two classes are indistinguishable in practice.
The error is in classification. A compound tested only in a system with negligible basal signal will be recorded as an antagonist, because the assay cannot resolve a decrease below a floor that is already at zero. The converse mistake is describing anything that lowers a downstream readout as an inverse agonist, when depletion of a ligand or blockade further along the pathway would do the same.