All automatics have a slipping "clutch" to prevent overwinding the mainspring or damaging the winding mechanism. Usually this is in the form of a slipping bridle inside the spring barrel. The inner end of the spring is attached to the winding arbor (central shaft that the gear you indicate is fixed to), but the outer end locates on a piece of spring that's a sliding fit inside the barrel. When the spring is unwound, the outer coils push the bridle onto the barrel wall, where it grips. The spring can be wound by the rotor.
As the spring approaches full wind, the coils move into the centre of the barrel, releasing pressure on the bridle, which can now slip on the barrel wall. The inner end of the spring still gets wound, but the outer end unwinds.
Whether Seiko autos work the same way, or if the "magic lever" of the winding mechanism slips instead, I've no idea. Keen to find out, though. Your description suggests that the "magic lever" slips.