He "preaims" consistently around corners, like I used to, and sometimes he gets surprised. The end bit where it looks like he's looking at CTs through the wall and smoke could be "wall hacking" but I doubt it is because of how consistent he is about "preaiming" around mostly every other corner. From what I noticed, he looked in the direction the sound came from, through the smoke, but didn't shoot. He probably didn't want to give away that he was behind the smoke. Because of all this, my opinion is that this demo is inconclusive.
As a side note, if you play in a quiet room and/or with a quiet headset/pair of quiet headphones with good 3D positioning sound rendering, you'll notice that you will tend to align your crosshair with people through the wall because of their footsteps, gun firing, reloading, tagging, etc.