Oil flow in a factory bypass system?

[gavinnz]

Ok I am confused.... Normal some would say, but I will leave my family out of this...

I just took apart a factory bypass oil filter system... And I am buggered if I can see how the oil passes through the filter? Oil comes in the side of the housing..... Goes out the bottom... what am I missing here? How does it pass through the filter when the inlet and outlet are both outside the filter?

I know the answer will be simple but it's not coming to me and googling it did not help....