Explanation of Source-Absorption Theorem Example
The key is the word away: since \$v_\pi&lt;0\$, the current has magnitude \$v_\pi g_m\$ and is flowing in the opposite direction from what the arrow is pointing in the small signal schematic, so from the emitter to the collector, that is grounded.

Total current \$i_e\$ is then made of two components, one flowing in \$r_\pi\$, the other flowing in the collector current source. The latter current can "luckily" be modeled with a resistor which resistance is \$1/g_m\$, since it is proportional to the emitter voltage itself.

When solving a circuit, and particularly currents, always keep in mind that a negative result is nothing more than a positive result, flowing in the opposite direction with respect the reference positive direction, that is assumed when starting to tackle the problem.