It's treating everything before the @ as auth information that gets passed to the URL. The "real" url starts after the @, which is the encoded IP address that vsminkov mentioned. So the leading forward slash is discarded.
An easier to read example: http://username:password@example.com/
It's all just layers of obfuscation.
Here's an interesting link that goes over it in more detail:
http://www.pc-help.org/obscure.htm
and here's RFC 2396 describing that part of the URL:
URL schemes that involve the direct use of an IP-based protocol to a
specified server on the Internet use a common syntax for the server
component of the URI's scheme-specific data:
<userinfo>@<host>:<port>
where may consist of a user name and, optionally, scheme-
specific information about how to gain authorization to access the
server. The parts "@" and ":" may be omitted.
server = [ [ userinfo "@" ] hostport ]
The user information, if present, is followed by a commercial at-sign
"@".
userinfo = *( unreserved | escaped |
";" | ":" | "&" | "=" | "+" | "$" | "," )