§95

The misunderstanding referred to in §93 arises from thinking that it is remarkable that one can think what is not the case. (Could the 'problem' be put like this? - How can you refer to something that is not the case? (is it even something?)
Wittgenstein attempted (in the Tractatus) to guarantee no failure of reference by suggesting that the world was made up of simple objects which are indestuctible and which were the constituents of states of affairs (possible concatenations of objects) - which names referred to. - So even states of affairs which didn't exist could be referred to by statements made up of names - all of which had referents.