So out of the vertical stack you have the basic cut of last back,#5, starting first.
They run their setup (here setting up deep/out)...
Then cut back the other way (here cutting back under/in)
going back to their setup phase. This is when the next cut should start.
Since #4 is now last back, they are now the primary cutter and should start their cut. (Here they setup under/in). ------------------------------------------------------------- This happens as the previous cut, #5, is finishing their cut.
So now if #5 gets the disc, then #4 should be getting open in Phase 2 of their cut (here going deep/out)...
Another situation is that #5 does not get the disc, so instead they finish their cut by returning to the stack
But because #4 was already cutting, it is possible for the handler to throw the disc to them
Going back to this position where #5 has cut and received the disc, while #4 has started their cut.
If they cannot throw the disc to the next cut (here #4) then they must "dump" the disc (or throw the disc back to a handler, #6 or #7)
So as #5 was receiving the disc, the stack will have adjusted to the new position of the disc on the field. #4 returns to the stack, #1 gets the stack back into position by setting up 5ish meters from the disc in the middle of the field, and a handler, #6, falls into dump position (with #7 setting up away from the play to allow #6 space to get open for the dump.)
So the disc is dumped back to the handler, #6, and the other handler, #7, gets in a position for a "swing" pass (throw from one side of the field right/left, to the other.
This is done to keep the disc away from the sideline (a difficult position to throw the disc from) and keep it in the middle/break side (a much easier position to throw the disc from)
Cutting can then continue with #3 now being the primary cutter with #2 being the new continue cutter and #1 adjusting the stacks position.