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I'd recommend you to start with paravirtualization such as LXC / Vserver, install some containers play with them and then try to understand how it works. Without this knowledge i doubt you can do something. Check this link: https://linuxcontainers.org/
This sounds quite worrying that you want to develop your own hypervisor and yet asking how a hypervisor works. Also why are you trying to re-invent the wheel when there are enterprise class hypervisors out there already?
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