$\{|a\} = \{\varnothing, \{a\}\}$, and then:
$\{|\varnothing, \{a\}\} = \{\varnothing,\{\varnothing, \{a\}\}\}$
$\{\varnothing,| \{a\}\} = \{\{\varnothing\},\{\{a\}\}\}$
thus we have in total: $\{\varnothing,\{\varnothing, \{a\}\},\{\varnothing\},\{\{a\}\}\}$