Simplified example
User A buys 10 tokens.
Current Reflection multiplier = 1.0
getBalance(user A) equals 10 * 1.0 = 10
Something happens which increases the reflection multiplier to 1.1
getBalance(user A) equals 10 * 1.1 = 11 The users balance changes without any transfer transactions
having to be done.
What I'm trying to understand is if everyone's balance is a formula instead of being a fixed value then how would this work if someone sends some of their tokens out
Just like the explanation you shared above, the user balance is dynamic, maybe the final balance is equal to raw balance * exchange rate, so maybe when you transfer token, it will charge fee or something else, I do not read the code, so I am not sure.