Watch it in real time and see how it works! The audio is being fed into the crossfader A, and is output to the splitter. Half is sent to the speakers, and half is sent back to crossfader B. The audio plus the "old" audio is mixed in the crossfader, and the same rules are applied again. Half to speakers, half back to B. This is repeated indefinitely until the audio gets so loud that it gets distorted and it makes some odd effects. I added the compressor just to keep the crossfader from overflowing, but you can turn it off, and I experiment with the compressor later on in the "song" ;)