Dutch bike lock, mounted on the seat-stays. It's unlocked, with the key still in the lock (it won't come out unless the bike is locked). The lock is a hollow circle (torus) around the wheel rim with a gap at the bottom for the spokes to pass through. Pushing the red handle pushes the shackle out of the left side of the torus go around the rim and into the right side of the torus, completing the circle and making it impossible for the wheel to turn or be removed.
https://mastodon.sdf.org/system/media_attachments/files/113/479/762/838/045/680/original/75df184234b76607.jpg