DOTA_TeaBag accidentally discovered the glitch while collecting red coins on a Japanese version of the game during the Tick Tock Clock stage. The glitch caused him to warp upwards, skipping a lot of the level. warping in this game is apparently very rare!
These were the guidelines for winning the $1,000 reward:
"The submission should be a .m64 and .st file, which when played perform the glitch. To submit, you can zip up these files, upload to TinyUpload.com, and then send me the link in a comment or private message. The bounty will hold until the first person successfully submits a recreation of the glitch, at which point I will add the word [CLAIMED] to the end of this video’s title, and then no one else will be eligible for the prize."