That's an interesting top. The top spinning on the katama probably is different, because it can walk along the edge. Who knows how they do...
Well, they treat it like a magician secret. If I knew for sure, I wouldn't publish it for respect to the performers
This is what I can say. I have seen it performed closed up and from different angles by Mr. Fujita and by Takechan and could not "see" any trick. Even when Takechan did it with two swords!
I remember that Ochan showed me the new sword he had got for the event but when I extended the hand to feel the blade he withdrew it immediately!
Last year Taka had a miniature traveling version that was kind of funny and he let me inspect it:
He must have tried the trick about 8 times for the photo and was only once successful, so skill is certainly involved.
There is a US patent for a toy version of the trick, from 1867! It was no doubt inspired by the Japanese artists, although the patent doesn't mention them
The Matsu Gensui troop was touring Europe on those years and probably also the US. The toy idea is simple, with a deep groove where the top travels and a cup to hold it at the end of the sword. The nice thing is the starter built into the hand guard. The inventor was William Mullally of Boston, US Pat. 71,319, Nov. 26, 1867.