It was a trick at the beginning, of course, because it relied on an unusual feature that was only available on HFS+ filesystems: directory hard links.
But if you back up to a network drive, you're really backing up to a file system image with an HFS+ filesystem inside it.
And APFS doesn't support directory hard links either, so if your drive is APFS formatted, you back up to an image as well!
So we've gone from just files to a special unique image file.
And people get burned by this: if the image file gets corrupted, you lose the entire backup.