Yeah, I've seen the video but something is a bit fishy and I'm not convinced they are doing much more than running linux within the space of the webkit thread. As a demonstration why only run a program with a tiny footprint? Why no complete boot logs?
cturt wrote pretty good explanation on the kernel exploit and how it was achieved: http://cturt.github.io/ps4-3.html
Basically he ran x86 version of freebsd in vm. He used the vm environment to create the exploit. Then he executed the exploit on ps4 via the webkit jit hole. Ofcourse he was able to match the freebsd version to what ps4 is using and scan the known issues list for potential security issues.
Ofcourse this doesn't mean ps4 is fully hacked but hackers do have good access to ps4 kernel and executing arbitrary code.