There is a well-known proof from information theory that the problem of sorting n distinct items has a worst-case time complexity of Ω(n log n) fixed-bitwidth operations: (1) Since each of the n items is distinct, the average number of bits needed to encode each item is Ω(log n). (2) In the worst case, in order to correctly sort the items, each bit of each item needs to be read. (3) Therefore, sorting the list requires reading Ω(n log n) bits.
So, I'm not sure how to understand the claim that their algorithm operates in "linear time". Are they saying O(n) operations where each operation operates on O(log n) bits?
[Edit: See below response from kraghen: The time is linear in the total size of the data, not in the number of items. I'll leave this comment up in case anyone has the same misunderstanding that I had.]