Question

operating a toothed section jack stand
raising
the cup of a toothed section jack stand can be raised freely. letting go of the cup will cause it to drop and stop at the next locking point.
locking
this type of axle stand is locked when the cam in the top of the jack stand slides into the toothed section, preventing the cupped section from dropping further. if the cup is at the correct height, the steel pin is inserted as an extra lock.
lowering
check that the vehicle weight is not sitting on the jack stand, before lowering the cup. if the cup needs to be lowered, the steel pin needs to be removed from the jack stand. then hold the cup with one hand and move the steel handle upwards using your other hand. the cup can now be eased down.
why can the cup move down freely, if you move the steel handle upwards?
the cam is moved away from the toothed section.
the cam slides into the toothed section.
the steel pin is caused to move free of the toothed section.

Explanation:

When the steel handle is moved upwards, it causes the cam - which locks the cupped section in place by sliding into the toothed section - to move away from the toothed section. This removes the locking mechanism, allowing the cup to move down freely. Also, the steel pin is removed as part of the lowering process and is not related to the cam - toothed section interaction that enables free movement when the handle is moved up.

Answer:

The cam is moved away from the toothed section.