It works because the shaft does not sit perfectly in the middle of the sleeve, it is on an angle. So when you rotate the sleeve around it produces different lies and lofts. If you take the sleeve out of the head and rotate it around you will notice that the sleeve angle is not the same as the shaft angle.
The TM sleeves are only canted on the very end, where the lugs are. The tapered section around the middle is what keeps it aligned to the hosel bore.