I was curious about the technique, and there's surprisingly detailed documentation here from MSDN of all places: https://learn.microsoft.com/en-us/windows/win32/dxtecharts/c...
Allegedly he was extremely difficult to work with and would not share the Night's 3d game engine with an American team that was developing a 3d Sonic game for the Sega Saturn, effectively kneecapping a big part of that console's commercial viability
IMO the gameplay and glitches are a significantly bigger problem. One Argentinian decided to take a different approach, rebuilding the game from scratch in Unity despite having no prior programming knowledge. It's called Project 06 (or P-06) and it's almost complete.