IPFS paths begin with a multihash and can be followed by an arbitrarily long path. Each path component is looked up in each IPFS nodes link-list until the final blob is retreived.
Animated gif showing the resolving of an IPFS path - github 
/ipfs/<hash-of-foo>/bar/baz /ipfs/<hash-of-bar>/baz /ipfs/<hash-of-baz>
# See also - IPFS Paths - IPFS Files - IPFS Multihash - DreamFactory IPFS Service