It involves using elastic dynamics and mathematical optimizations to decide the body-shapes during motion and interaction with forces.
Methods for simulating deformation, such as changes of shapes, of dynamic bodies involve intensive calculations, and several models have been developed.
Being able to interact with such a realistic 3D model would mean that calculations would have to be performed within the constraints of a frame rate which would be acceptable via a user interface.
Recent research has been able to build on previously developed models and methods to provide sufficiently efficient and realistic simulations.
The generalized external body force simulations makes elasticity calculations more efficient, and means real-time interactions are possible.
Also the hierarchical basis means that detail levels can be introduced or removed when needed - for example, observing from a distance or hidden surfaces.
There are performance tuning similarities between this technique and procedural generation, wavelet and data compression methods.
Projects are taking place to further develop this technique and presenting results to SIGGRAPH, with available reference of details.
Academic institutions and commercial enterprises like Alias Systems Corporation (the makers of the Maya rendering software), Intel and Electronic Arts are among the known proponents of this work.
There are also videos available showcasing the techniques, with editors showing interactivity in real-time with realistic results.