I was confused at this one as well, until I looked up the Thai translation; then it became quite clear:
Paññāvimuttaniddese – paññāya vimuttoti paññāvimutto.
paññāvimuttaniddese In the explanation on the one liberated through wisdom - vimutto he is liberated paññāya through wisdom, iti therefore paññāvimutto [he is called] one liberated through wisdom.
So sukkhavipassako catūhi jhānehi vuṭṭhāya arahattaṃ pattā cattāro cāti pañcavidho hoti.
so He hoti is pañcavidho of five sorts, iti thus: sukkhavipassako the one with dry insight ca and pattā those by whom is attained arahattaṃ arahantship vuṭṭhāya having emerged catūhi from the four jhānehi absorptions.
hi but etesu in regards to those, na not ekopi even one hoti is aṭṭhavimokkhalābhī one who has obtained the eight liberations. Teneva With this meaning, indeed, itiādimāha was it said starting thus: na heva kho aṭṭha vimokkhe.
Arūpāvacarajjhānesu pana ekasmimsati ubhatobhāgavimuttoyeva nāma hotīti.
pana but, sati when there is ekasmim one arūpāvacarajjhānesu among the formless-range absorptions, iti [it is said] thus: hoti he is ubhatobhāgavimuttoyeva actually one liberated on both sides.