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How is this possible? Thousands upon thousands of rainbow popsicle sticks, layered together into an enormous exploding chain reaction.

Spoiler: (Hide Spoiler) It looks like the popsicles are weaved to put a stress load on each popsicle. As long as the next popsicle in the weave supports the stress load of the previous, the system is in equilibrium. So if the last piece is disturbed, the popsicles will spring out of the weave in sequence. (by dashen)
They simply interwove all the Popsicle sticks together to create one giant interweave. The natural tendency of the Popsicle stick to resist bending makes it so that when you weave them together, they naturally want to pull apart and become "un-bent" again. That's why they all exploded like that. (by kiripaul)
The tension on the popsicle sticks was causing the curve in the chain to put slight upward pressure on the cups, causing the cup to tip slightly outward. You can when the tension on the last corner has dropped, the popsicle sticks under the cups lay flat, allowing the cups to drop back into place. (by superbee1k)
The sticks are braided/woven together so they are all held under tension. Release the end and the force propagates through the line - pretty straight forward and definitely fun! (by Dake)

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