blew me away. 'datamoshing' both introduced and refined.
watch the much higher quality version here.

".. at 1:05 that is a balloon filled with red glitter and flour exploding that creates the mosh that breaks through…and at 2:11 that is really a rock breaking through a big sheet of glass a few feet in front of the camera. I had 2 pieces of glass and Eric the production designer had 2 chances to throw it right, and he did. At 2:32 those balls of light that are wiping Kanye are sparks from a grinder I shot hitting a pieces of metal, and aimed the sparks right at the lens." from nabil (director) + ghost town media.

near-simultaneous release with another video using same techniques:

from teraflop via metafilter:
"video codecs like MPEG-4 use motion compensation to cut down on the bit rate. Only a few keyframes of the video are encoded in full, about one every few seconds; the rest ("predicted" frames) store a rough estimate of how much each block of pixels has shifted since the previous frame, along with just enough actual pixels to make up the difference between the estimate and the real picture. So if there's a single moving object on a static background, all that needs to be stored is the area of the background that's been uncovered since the previous frame.
..what they did is encode their raw video clips with no keyframes (except the very first one), then spliced them together, so the decoder applies the motion vectors to the wrong original image. .. they also duplicated the same frame several times in some places, to get those swirls of color."

early paperrad experiments.
everyone credits Takeshi Murata.
great article about the kanye video, and the whole technique, from motionographer.

the most exciting thing i've seen in a long time. ripping apart the usually invisible technological operations and then reassembling the pieces, without the ability to directly predict how the technique will alter the value of the whole. making the process explicit - forcing the elements of prediction and chance.
expect to be seeing this everywhere.