for some reason in the example the base doesn't change
Exponentiating an exponentiation doesn't change the base of the inner exponentiation. (x^y)^z = x^(y*z)
Again, ax^2 means a(x^2), not (ax)^2, therefore (ax^2)^2 = a^2 x^4. You need to drill this bit of notation into your head, otherwise nothing is ever going to make sense.
also how did you get 16?
I specifically only changed one term at a time to make it as clear as possible what was happening. Look closely at the transformation.
4^2 * (x^2)^2 = 16 * (x^2)^2