Tested with pre-alpha, it looks like the directories are created, the file is extracted from 7z, and later there's no information about redirections. Below are parts of log created with verbosity=4:
rlwpx.free.fr.WPFF.hrsk.7z is a 7z archive. Will use 7za to extract it...
Extracting entries from /var/cache/hostsblock/rlwpx.free.fr.WPFF.hrsk.7z...
Created directory /dev/shm/hostsblock/rlwpx.free.fr.WPFF.hrsk.7z.d.
Moved rlwpx.free.fr.WPFF.hrsk.7z to /dev/shm/hostsblock/rlwpx.free.fr.WPFF.hrsk.7z.d.
[...]
Un7zipped rlwpx.free.fr.WPFF.hrsk.7z.
Extracting obvious entries from rlwpx.free.fr.WPFF.hrsk.7z...
Extracted obvious entries from rlwpx.free.fr.WPFF.hrsk.7z.
Extracting less-obvious entries from rlwpx.free.fr.WPFF.hrsk.7z
Extracted less-obvious entries from rlwpx.free.fr.WPFF.hrsk.7z.
Deleting /dev/shm/hostsblock/rlwpx.free.fr.WPFF.hrsk.7z.d...
Tested with pre-alpha, it looks like the directories are created, the file is extracted from 7z, and later there's no information about redirections. Below are parts of log created with verbosity=4: