I watched the video but don't quite understand what's going on.

So you ended up with your browser being configured to use a proxy that gave it DNS resolution for .hyper URLs? How are these routed? The holepunch people are loud about it being P2P with no middle man but how do packages actually travel from the client to the server and back? I see you are using no ssl. Is your proxy encrypting with the .hyper URL's public key or something?