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AFIK this is not implemented using the usual SSHFS/FUSE approach. This is something new.

Edit:

It is either a kernel-mode filesystem, or a user-mode. I dont think that this is possible with an other approach, but IDK that well win32 and mac.

More like WebDAV, but yeah. This is what jungle disk did when it was first released.

This isn't the case here.

So probably something similar to eldos cbfs/dokan backed by a filesystem cache db so the crud operations do not need to hit the backend?

It's a filesystem filter driver

SSHFS has selectable local caching and automatic sync of those cached files?