I see how it is is a phrase which can describe various situations like for example people with ulterior motives and people with no respect at all for you when they show you their true colors.
It can be said in a jokey sarcastic way between people and doesn't have necessarily have to be a serious situation.
Or when someone doesn't understand the situation of someone and only think one way. The other person sees they wasted their time and sees that the other person is very cleverly sneaky in their ways to obtain something they want regardless of the outcome for you whether it be catastrophic for you when you realize he is not what he seems and acts under false pretenses.
Also when someone thinks you owe them something or need to prove something to them when the truth is it not the case but they just want to control or put you down.
And lastly people who ask to many questions personally or obtain information when they don't even know you only for the purpose for something more sinister even when there is nothing or no real reason.
For Example, when someone uses you to get something or when he around other people or in a place of your surroundings he shows his true colors and has no respect for anything and disrespects you to show you up or give you a bad name so in the future you will have problems. The other person who realizes the true colors of this person and says I see how it is.