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On top of the idea of posting this video on r/UFOs and watching people lose it, this shader looks like it has some solid potential for horror and camera footage-driven games. It pretty much feels like zooming in with digital zoom, complete with imperfections and artifacts: compression, low-light noise, and color bleeding that add to the realism and discomfort.
Its creator, a Reddit user named Cactus on Fire, explained that the first thing they did was remove Unity's ACES color space and opt for a more raw look with no color grading at all. "While ACES looks awesome, it also applies a heavy color curve that changes the whole color space into something that we're used to seeing in movies rather than the raw natural colors. And then just played around with the exposure a little until it looked okay", added the developer.
Although Cactus on Fire has no plans to release this shader to the public, James "JAM2GO" Hodge has posted a few videos on how to achieve a similar effect using Unreal Engine 5:
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Sci-fi brush and alpha set for Substance painter, ZBrush, Quixel DDO, 325 brushes and height/alpha maps, all 2048x2048 16bit in tiff as well as jpeg and ABR Photoshop Brushes.