It's interesting that you seem to be insulting your CEO, who managed to solve a customer problem with reasonable tech requirements for you and a grandiose upsold sales pitch. Seems like a win-win-win
If it happened like the OP described, they just got lucky, but it could have gone differently. A good (but less than honest) CEO would have colluded with the developer before talking to the customer, both agreeing to upsell an easily implemented feature. However, the mark of a PHB is that he/she will ask for random features while completely misjudging their feasibility -- sometimes you'll get lucky, sometimes you'll crash and burn horribly.
My new hobby is using "collusion" instead of "collaboration"
My rule of thumb is that if it's a plot to dishonestly deceive the customer, it's probably collusion. If instead it's an honest plan made with the understanding of the customer, it's a collaboration ;)