I believe on the LTK soaker you are Knitting, as oppossed to purling, when doing the YO.
To do a YO,
bring the yarn between the needles to the front, like you would if you were going to purl. then bring the yarn over the right needle to the back so that you can knit the next stitch. This causes an extra pass of the yarn over your needle. Your YO is complete.
Hope this helped. Somebody else might be able to explain this more clearly.