As explained in the comment, it behaves like a Shell Link. Here is one way to resolve the target path, it uses the IShellItem2 COM interface and the System.Link.TargetParsingPath property.

C++ version:

#include <windows.h>
#include <stdio.h>
#include <shobjidl_core.h>
#include <Propkey.h>

int main()
{
  CoInitialize(NULL);
  {
    IShellItem2* item;
    if (SUCCEEDED(SHCreateItemFromParsingName(L"c:\\mypath\\link", NULL, IID_PPV_ARGS(&item))))
    {
      LPWSTR path = NULL;
      if (SUCCEEDED(item->GetString(PKEY_Link_TargetParsingPath, &path)))
      {
        wprintf(L"Target: %s\n", path); // x:\path\to\dir
        CoTaskMemFree(name);
      }
      item->Release();
    }
  }
  CoUninitialize();
  return 0;
}

C version:

#include <windows.h>
#include <stdio.h>
#include <shobjidl_core.h>
#include <Propkey.h>

int main()
{
  CoInitialize(NULL);
  {
    IShellItem2* item;
    if (SUCCEEDED(SHCreateItemFromParsingName(L"c:\\mypath\\link", NULL, &IID_IShellItem2, &item)))
    {
      LPWSTR path = NULL;
      if (SUCCEEDED(item->lpVtbl->GetString(item, &PKEY_Link_TargetParsingPath, &path)))
      {
        wprintf(L"Target: %s\n", path); // x:\path\to\dir
        CoTaskMemFree(path);
      }

      item->lpVtbl->Release(item);
    }
  }
  CoUninitialize();
  return 0;
}