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There seems to be a camera in the lower right corner, which I assume is what they're using.
This seems to be basically an application of plain 'ol blue-screen technology. While it's an interesting application, it's nothing real cutting edge.
The proposals for optical camoflauge that I've seen involved sensors and displays embedded into the suit or skin of the vehicle, so that any observer would see what was on the opposite side of the object.
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