I've seen it, and it's ridiculous how easily, and how little time it can take to do something like that. Dove(the company) also released something a bit like this.
IT was sped up... And here's the dove one: http://www.youtube.com/watch?v=iYhCn0jf46U...related&search= Also: http://www.youtube.com/watch?v=5g0cAsWlcns...related&search= Just as much skill?? lol Good find though, that is still pretty amazing, I never thought of the liquify tool as that useful tbh..