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The 'original' mobi format was relatively restricted in the formatting it allowed. More recently Amazon introduced the azw3 format that is much closer to epub (it is based on the epub standard) and has richer formatting support. The azw3 format is so close to epub that it is relatively easy to extract it as an epub.
To confuse things further Amazon introduced the 'new' mobi format that contain two copies of the book - one in azw3 format and the other in the original mobi format. The idea is that the reader uses the azw3 version of it supports azw3 and the mobi version if not.
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