I worked with a fairly complex http api app that ran as a rather svelte wsgi framework under gunicorn, and we saw at least 10x or more increase in memory usage than cpython when we switched to pypy, once the jit was fully warmed up (memory usage seemed to hit steady state after about an hour). pypy has also historically (in my experience) been a bit more "lazy" (deferring GC of individual objects longer) than cpython when an object falls out of scope.
My general rule of thumb for pypy has historically been that you trade memory (requires more of it) for speed (faster) when compared against cpython.
Maybe the reimplementation itself was just far more efficient? Hopefully the talk itself clarified that point. I would be very interested in hearing more about that particular aspect.