
Since BM will probably not answer questions about this, I'll try an educated guess (educated by Red).
What others are doing to achieve something similar is copying the color channel which is least clipped into the other two for the highlight only. This will completely desaturate the highlight but can bring back some detail. Unfortunately, one needs some transition into the fully colored luminance values, and that's where the method can fail if you have strong saturation close to clipping. We have done this manually years ago with a luma mask and some channel ops, I assume it is just a one-click version of that. It works pretty well if you don't have much color in the highlight areas to bring back some definition, up to a half stop or two thirds if you are lucky.