I have seen some of this around, but don't understand what is going on.
The owl that shows up and the plain striped piece that you show, are they the same side and the picture shows up if you tip it a little? Is that the illusion? To me so much about knitting seems magical and there seems to be no end of the surprises it brings.
If the picture does show up on tipping, it is pretty amazing.
Some scarves made with this technique would be cool all right. Neat project. Lots of fun.