How is the cup drawer done?

[July Fourth]

You usually get drawn with your friends and the rest is random until the last few rounds

The last few rounds isnt random either... I got a cup with 2x Level 16, 2x Level 15, 5 or 6x Level 14, etc, the clubs are seeded until the later stages and the quarter-finals would look like this...

Level 14
Level 15
---------
Level 14
Level 16
-----------------
Level 14
Level 15
---------
Level 14
Level 16

With the highest levels getting seeded to the Semi-Finals and the two highest ranked Level 16 teams playing home legs 2nd.