Examine the filter and see if this makes sense as the water flow path. The water enters the bottom slits and flows to the top of the sponge. From there it flows down through the sponge and carbon. When it gets through the carbon it flows in and up to the lift tube where the air lifts it out the top of the tube. I am going by your drawing of construction, but that is how I see it. Without the box thing inside, the water could flow directly from the slits in the bottom to the lift tube and completely bypass the sponge filter.