Like the previous incarnation, [austin]’s work takes a regular .PNG image file and hides stuff in the pixel data. A few of the lower bits for each pixel are modified (three bits from the red and blue, two bits from the green – a good choice, the human eye is very sensitive to green) and a file is embedded inside the .PNG image.
For an example, [austin] embedded some stuff inside the xkcd comic underneath this post’s title. Even though the image is mostly white, we can’t see anything wrong with the colors. If you’d like to decode the message, [austin] put his encoder and decoder up on github. Feel free to take a shot at it.