The alkyne looks like a d orbital moreso than an alkene because of the orthogonal shape of the two π orbitals. This means that the soft lewis acid will have a stronger interaction with it. In other words, it is a better ligand. The alkyne can then undego a metathesis reaction forming a cylopropyl metalocycle, and then it Hg gets reduced by Nucleophilic attack. In addition, the transition state requires less energy to make, and less energy to collapse. Once the Hg(0) species is formed, it will act like a grignard reagent, and become protonated due to the acidic conditions regenerating the catalyst Hg(II).