Beside one of the speaker boxes crouched an androgynous creature in a raincoat. Its neck was bent, its hair was slicked back like a schoolboy’s off its sweating, waxen face, it nodded its head in time and kept its eyes turned up sideways and fixed on the lit, jerking figures above it. Something damned in its posture and its crooked stare made Athena shiver.She followed it to the lavatory – so it was a girl – and heard it vomiting.
Does "it" in the phrase "jerking figure above it" refer to "speaker box" and "jerking figures" are some kind of statue that are above it?
or does it mean: She was watching the figures of people that were dancing?
Source: The Children's Bach by Helen Garner