Here we are actually using some of those inversions to play 2 5 1's all over the neck. This is an example in F but try it in all 12 keys! The chords are Gm7b5 -- C7b9 -- Fm7.

The diminished function is a C7b9 without the root. To look at a C7 chord we have
C -- E -- G -- Bb
Flat nine would be Db
Diminished we're using is built
G -- Bb -- C#(Db) -- E

As you can see the diminished has all the notes of the C7b9 but the C. Hey! Isn't that what bass players are for?! (kidding ;-) )

-Related Lessons-

0:22 – m7b5 Inversions (Whole Neck!)
0:22 – Diminished Arpeggios & Chords
0:22 - Minor 7 Inversions (Whole Neck!)

PDF - m7b5 InversionsDiminished & Minor 7 Inversions

Backing Tracks - Minor Progressions

Other Lessons