It's fake. Basically, the PS3 will look to a file located on a Sony server (like this: [Register or Login to view links])
If you edit some parameters (similar way as to doing the FW bypass) it will show a "new" version (that, can be old) - all seems fine, until the PUP is actually downloaded, then the system will realize it is an older version, and not downgrade.
My vote goes to fake, but I did chuckle at the way he pronounced Sony (SooNeey) as "SahhNeey"
I agree with CJPC, the updatelist.txt was simply modified is all... he keeps repeating the word "downgrade" in the video (and hiding a private IP that isn't routable ), but says nothing remotely technical to make me believe otherwise.
PS: The first PS3 downgraded would actually have been years ago, with an Infectus Mod.
Yeah, I agree with CJPC and PS3NEWS - looks like he's just connected to a modifed ps3-updatelist.txt. It's a sham he only shows up to it starting the download - the next few mins would be more interesting if he got anywhere with the actual Install!
I notice he says something link "and now it's installing" - no dumbass, now it's DOWNLOADING!