HEY!
http://www.youtube.com/watch?v=LhjAjwjUfQA&feature=player_detailpage#t=5m34s
THIS is that THING I keep trying to explain to people about why BB superflash buffering is counterintuitive. (Well, good for Tager in this case, but bad for gameplay in general.)
So Ragna goes to do a j.C, which for the player is jump, wait, C. You don't do that visually - there is a certain amount of time you wait after jumping before hitting C, such that C will hit the opponent in the head.
Tager does his 720 flash after Ragna jumps but before Ragna hits C. Ragna can't possibly react to the superflash, and he waits the correct amount of time and hits C.
However, since the flash stopped time (and Ragna), the C comes out the frame after the superflash, which makes it way early and has him whiff it down into the 720.
In any other game, the C input would have been eaten by the flash, and Ragna would have done nothing and been safe. To me, that's the correct way for it to work.