Odysseus can be categorized as an archetype due to his encounter with the Cyclops, Polyphemus. This event is significant because it highlights Odysseus' cunning and resourcefulness, which are key characteristics of a hero archetype. Odysseus was able to outsmart the Cyclops and escape from his lair, demonstrating his ability to think strategically and overcome challenges. This event also illustrates the importance of wit and intelligence in the face of adversity, which is a common theme in many hero stories.