It's the magic in the box.
The black wires be they to the battery, contacts or looped wire to the engine are all ground/earth so you will get continuity.
Unlike traditional points the contacts are not part of the power circuit or the HT circuit they all go back to different parts of the circuit board.
Probably not a good idea to have put +ve power to the red wire with the tester.
I've said it enough times on the three forums all the CDIs I have seen on the market work with either Hall sensor where the middle wire is signal or with some form of contacts where just the outside two wires are used, colour varies between makers. I'll take photos of mine to show the two outer wires of the three being used a bit later