What is going on in this photo? Look closely - the bottom of the glass shows an upside-down image of clouds and grass, but above that the grass transitions into an upright image of a trampoline and other play equipment. Why is some of it right-side up and some upside down? 

Short answer: The whole scene gets turned upside-down from refraction through the curved surface of the glass. In addition to that, the upper part reflects off of the flat, horizontal surface of the liquid in the glass - that reflection also flips the image, turning that part back right side up. 

More details: The bottom half of the liquid-filled glass is shaped a lot like a converging lens - the kind of lens in reading glasses, magnifying lenses, and our eyes. Wait - I thought the bottom of the glass made an upside-down image. Reading glasses, magnifiers, and eyes don't make upside-down images, do they?! Well, yes and no. When you use reading glasses or a magnifier, you are generally looking at something close to the lens. In that case you get an upright image in front of the lens. But try looking at an object far from the lens - it probably looks blurry. That's because light from a distant object makes an image behind the lens, and if you hold the lens close to your eye, your head is in the way of the light forming the image. So try this: Hold the glasses or magnifier at arms length (or maybe further, depending how strong the lens is) and see if the lens makes an image of a distant object that appears to hover between you and the lens. (Or you could try to focus the image on a wall or piece of paper or something.) That image is upside-down, and that is the type of image you see through the bottom of the glass above - an inverted image of distant objects (clouds and grass). 

What about your eye - your eye looks at distant things, doesn't it? Yes, and the image it forms on the retina is upside-down, just like the image of the clouds seen through the glass above. You don't notice that the image is inverted, because your brain knows how to interpret it so you "see" everything right-side-up! 

The second effect in this photo is reflection. Light from the grass and play equipment comes from below and is traveling somewhat upward as it arrives at the glass. It enters the glass and liquid, but moves upward and hits the underside of the liquid surface, reflecting off that surface, before exiting the glass and liquid. The glass and liquid invert the image just like they did to the clouds, but the reflection does another inversion, bringing the image back right side up. 

Wait! Mirror reflections flip left and right, they don't turn images upside-down, do they? Yes and no. Normally when we look at a mirror reflection, we are looking at a mirror hanging on the wall - a vertical surface. That mirror flips left and right. But the surface of the liquid is a horizontal surface, so it flips up and down. Take a mirror (even the smooth surface of your cell phone) and hold it horizontally like the surface of the liquid. Look at the reflection of objects in the mirror, and see that the reflection is upside down!

Image and original question thanks to Atula Sharma.