Think about how the PPh3 first reacts with the epoxide - it does a nucleophilic attack on one of the carbons from below the epoxide ring to give the intermediate shown below left (I have drawn the P substituents as Me for clarity). This then rotates to form the betaineoxaphosphetane (4-membered ring with P-O bond shown right) putting the Me groups cis to each other. The betaineoxaphosphetane then eliminates triphenylphosphine oxide in a [2+2] process with the Me groups locked in the cis configuration hence the product alkene. Better
Better diagrams are here if you are still confused.