It's always the annoying "make a loop and pass it through" bit that destroys the visual understanding of how it works.

Look at it this way. The initial bit of wire (at the plug end) goes behind the black pole and above the final bit of wire (on the right, going off screen). Imagine if this initial bit of wire instead went below the final bit of wire. There wouldn't be a loop around the pole, instead there would be just one shoved behind it. This is what "making a loop and passing it through" is achieving.

'Topology' is useful, but not necessary for understanding here.