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Curious, how do the capture the event of the cover lifting?

They don't. They capture the active/inactive event.

Try tap the home button and re-open the app.

Could you elaborate? Is the inactive event triggered when the screen is completely covered, and any uncovering triggers the active event?

There are some cases where these events are triggered, open and close the Smart Cover is one of them.

You can read the following API documentation for more info:

My guess is they do the switch of question when applicationWillResignActive is being called. Simple as that.