Understanding there are many styles of wearing payot, in my personal experience nearly all chassidim I have met wear them tightly curled in front of their ears. Example:
Is there any particular religious reseason for wearing them in this fashion?
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There are who have the custom not to cut the payot at all. Belz specifically has that minhag rooted in Kabalah.
If they were to leave it the way they are naturally, they would sweep the floors and would withhold them from sticking to their minhag, therefore they curl so that it should reach down up to a certain amount no matter its actual length.
Another aspect may be as we find in Shabbos 95' that one transgresses the Melacha of Boneh when being godeles meaning curling a girls hair as we find that when Hashem curled Chava's hair upon bringing her to Adam the posuk refers to that with the word ויבן meaning building.This shows us the significance it has on the beauty of the hair. Therefore we can say that it is beautifying the payot and would, therefore, be considered hidur mitzvah.