I mentioned this in the old thread about this video, but I went to the guy's website and he admitted to using an emulator to keep saving and reloading his state until he did an optimal run-through of SMB3. He didn't slow it down though and said that it took a very long time.
The point was not to fool people into thinking he had beaten the game in 11 minutes, but to see what a "perfect" completion would look like.
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