I am going through a proof of hamiltonicity of $G^2$ and stuck quite in the beginning.
Some definitions:
$G$ is a finite non-hamiltonian 2-connected graph, $C$ is a cycle in $G$, $D$ is a component of $G-C$ and $C$-trail is either a $C$-path or a cycle meeting $C$ in exactly one vertex.
Square of a graph $G$ (denoted by $G^2$) is a graph in which two vertices are adjacent if and only if they have distance at most 2 in $G$. That means $G^2$ is "created" from $G$ by adding an edge connecting vertices whose distance is at most 2.
The part where I am stuck:
If $D$ consists of a single vertex $u$, we pick any $C$-trail in $G$ containing $u$, and let $E_D$ be the set of its two edges. If $|D| > 1$, let $\tilde{D}$ be the (2-connected) graph obtained from $G$ by contracting $G−D$ to a vertex $\tilde{x}$. Applying the induction hypothesis to $\tilde{D}$, we obtain a Hamilton cycle $\tilde{H}$ of $\tilde{D^2}$ whose edges at $\tilde{x}$ lie in $E(\tilde{D})$.
I really do not understand how $\tilde{H}$ is obtained, can you help me? What exactly is "the induction hypothesis"?
The statement is here, page 301, last lines of that page. Also here, page 2, with exactly the same wording.