How is this rotor setup flying?
You are right, the two rotors move in opposite direction. This is called a co-axial rotor and is used by the Russian helicopter design bureau Kamov. A co-axial rotor can also be found on many model helicopters for indoor flying. They are a subspecies of helicopters with contra-rotating rotors.

Helicopters with contra-rotating rotors do not need a tail rotor and are much easier to fly than Sikorsky-type helicopters, because they suffer much less from instability. This group also comprises intermeshing rotors like those used on Flettner or Kaman K-Max helicopters.



Kamov Ka-32 with co-axial rotors operated by HeliSwiss (picture source)



Kaman K-Max with intermeshing rotors modified as an unmanned vehicle (picture source)

For more info, just follow the links.