So basically H1 and H2 have the same SHA1 hash. By adding suffix I1I2 to both you get H1I1I2 and H2I1I2. That's the length extension.
This is really a terminology question. I had a clear understanding of "length extension attacks" but it seems on this comment page people are using something else now. I've been looking over crypto.stackexchance and twitter to see if I missed the memo but this looks like a new usage.
Is it? How? It's a simple case of length extension, just that here, since we have two independent starting points sharing the same state, we start with a collision and we extend to a collision.
In other words, these are two length extensions on independent prefixes. It just happens that these prefixes share the same state / hash, hence the surprising result (on a first glance).