The author generates a Tower of Hanoi and looks at the sequence:
$$1, 3, 7, 15, 31, 63,...$$
He guesses the recurrence relation from the first few terms:
$$H_{n} = 2^{n} - 1$$
Now he wants to prove it using proof by induction:
Base case: For $n = 1$, it's true.
Induction case: Assume for induction that $H_{n - 1} = 2^{n - 1} - 1$, then
$$\begin{align*} H_{n} & = 2H_{n - 1} + 1 \\ & = 2(2^{n - 1} - 1) + 1 \\ & = 2^n - 1\end{align*} $$
I don't understand the above equation. First he says that $H_{n} = 2^{n} - 1$ and then he changes it to $H_{n} = 2H_{n - 1} + 1$ - I don't get the logic in that.
The recurrence relation is not $$ H_{n}=2^{n}-1 $$
but rather $$ H_{n}=2H_{n-1}+1 $$
(this comes from the Hanoi problem)
We now guess that the solution to the recurrence is $$ H_{n}=2^{n}-1 $$
and show that this is true using induction.
There is the base case that should be clear, our hypothesis would be $H_{n-1}=2^{n-1}-1$ and we would use it to prove $$ H_{n}=2^{n}-1 $$
By using the recurrence relation $$ H_{n}=2H_{n-1}+1 $$
and now use the induction hypothesis and set $H_{n-1}=2^{n-1}-1$ and we get $$ H_{n}=2(2^{n-1}-1)+1=2^{n}-2+1=2^{n}-1 $$
which is what we wanted to prove