From description i've read it means the second one, is calculating when to end ray when it hits the object.
http://www.seas.upenn.edu/~pjia/raymarch/report.pdf [point 3.3 or 1.2]
Guy explanation on video is to vague too to tell. I havent seen anything that suggest that they are doing something unusual in terms of SSR, You can see that they disappear in the same way as in Crysis, You cant see reflection of object behind the camera, You can see that some object can bug reflection in the same way as in Crysis 3 or UE 4 Infiltrator demo [
http://www.youtube.com/watch?feature=player_detailpage&v=mw-jGmLFAco#t=1s -- You see choppers bugged reflection even though they shouldnt reflect on the water yet?]
Maybe he was talking about glossy reflections of lights or situation like here when one object/light is giving reflection on different surfaces.
http://img.photobucket.com/albums/v284/Bigtnaples/07d878f36b34164522c41a134e738bcf_zps961820b0.jpg
Hard to tell really from his description. Also those reflections looks quarter res or are just blurred in awful way, because no way its half-res on the screen above.