.How did the children find a loop? How did the setting change?

They find a hiding place and as the morning comes discover another loop with the help of a book called Tales of the Peculiar. The loop is that of menageries-peculiar animals and on the way to their hiding place the peculiar children kill a hollow. They manage to kill it because of Jacob; he is now not only able to see the hollows but also to predict their next moves.