Simply cut top ridge of cup. Pull in strips. Put in pot and fill. Roots will stay together and leave from cup slowly. I have done this many times.

Interesting.  I have a split cup design, but I do remove completely from cup and surround with 3:1:1.  It fills in the sides very easily since it is loose soil.

I have a 100% success rate going from cups to pots.  However once or twice the soil did fall apart after opening the cup.  The cutting always survived, though.

I've recently done something similar with a couple new potted air-layers that I wanted to move. I wanted to move them to a SIP for the summer, but the roots were still more tender than I would have liked.

I cut the bottom out of the original pot and then carefully put the tree, still in the old pot, in the half-full new pot. I then cut the old pot into strips like in your picture (held the pot together with a strip of tape at the top). Finally I finished filling the new SIP pot with dirt, cut the tape, and then gently tugged out the old pot strips. No chance of loosing dirt or disturbing the new tender roots. Worked like charm!

CliffH