[guided]Recall the auxiliary function $F:\{(a,b)\in P\times P:a\le b\}\to\mathbb Z$: it is defined by $F(a,a)=1$, and for $a<b$ by $F(a,b)=\widetilde{\chi}\bigl(\Delta((a,b))\bigr)$, where $(a,b)=\{w\in P:a<w<b\}$ and $\Delta((a,b))$ is the order complex of this open interval. We want to show that this Euler-characteristic function $F$ satisfies the same recursion as the Möbius function. The recursion we need is
\begin{align*}
F(u,v)=-\sum_{u\le z<v}F(u,z)
\end{align*}
for $u<v$. The reason this is the right identity is that the Möbius function on a finite poset is characterized by $\mu_P(u,u)=1$ and
\begin{align*}
\mu_P(u,v)=-\sum_{u\le z<v}\mu_P(u,z)
\end{align*}
whenever $u<v$.
Start from the right-hand side. Since $F(u,u)=1$, we have
\begin{align*}
-\sum_{u\le z<v}F(u,z)=-1-\sum_{u<z<v}F(u,z).
\end{align*}
For each $z$ satisfying $u<z<v$, the definition of reduced Euler characteristic gives
\begin{align*}
F(u,z)=-1+\sum_{m\ge 1}(-1)^{m-1}c_m(u,z),
\end{align*}
where $c_m(u,z)$ is the number of chains
\begin{align*}
u<a_1<\cdots<a_m<z.
\end{align*}
Substituting this expansion gives
\begin{align*}
-\sum_{u\le z<v}F(u,z)
=
-1+\#\{z\in P:u<z<v\}
-\sum_{u<z<v}\sum_{m\ge 1}(-1)^{m-1}c_m(u,z).
\end{align*}
Now we interpret each term as counting chains in the open interval $(u,v)$. The term $\#\{z\in P:u<z<v\}$ is exactly $c_1(u,v)$, because choosing one element $z$ strictly between $u$ and $v$ is the same as choosing a chain
\begin{align*}
u<z<v.
\end{align*}
For longer chains, fix $k\ge 2$. A chain
\begin{align*}
u<z_1<\cdots<z_k<v
\end{align*}
has a unique last internal element, namely $z_k$. Removing that last element from the endpoint role leaves the prefix
\begin{align*}
u<z_1<\cdots<z_{k-1}<z_k,
\end{align*}
which is counted by $c_{k-1}(u,z_k)$. Conversely, any chain counted by $c_{k-1}(u,z)$ for some $z$ with $u<z<v$ extends uniquely to the chain
\begin{align*}
u<z_1<\cdots<z_{k-1}<z<v.
\end{align*}
This is a bijection between chains with $k$ internal elements in $(u,v)$ and prefixes counted in the double sum with $m=k-1$.
The sign also matches. A prefix with $m=k-1$ contributes $(-1)^{m-1}=(-1)^{k-2}$ inside $F(u,z)$, and the outer negative sign changes this to $(-1)^{k-1}$. Therefore
\begin{align*}-\sum_{u\le z<v}F(u,z)=-1+\sum_{k\ge 1}(-1)^{k-1}c_k(u,v).\end{align*}
The expression on the right is exactly the reduced Euler characteristic expansion of $F(u,v)$. Hence
\begin{align*}
F(u,v)=-\sum_{u\le z<v}F(u,z).
\end{align*}[/guided]