Yes, with just the red and green terminals connected you are only measuring between those two terminals. The tester displays the the voltage measured as being between the live and earth because those are the labels assigned to those terminals.
The 214V and 48V displayed will be the voltages that are present on the internal resistances in the MFT which are used in the measuring circuit and bear no relation to anything outside of the MFT.
Inside the MFT there will be a network of resistors connected between the three terminals which are used to make the voltage measurement, when only two of the three terminals are connected to a source of voltage the third terminal will float at a value proportional to those resistances.
As above test it with an AVI and see what you get, it is likely to be a capacitively coupled voltage (ghost voltage) which will not show up as a live voltage with an AVI.