I wrestled with this myself, but found a solution (eventually), the trick is, to go to the point where the conveyor belt turns up, in that indentation, you should be able to stand. Now, watch Manny's head carefully, because you'll have VERY little space to move. Turn him around, and eventually, his head should start facing the lever, looking down at it. Hit enter. Manny will now jump off of the conveyor belt, and you should be able to move on.
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