Pure (eg. Distilled) water isn't a very good conductor at all. It's only when you add contaminant ions that it starts to conduct electricity in any meaningful sense.
Most people's experience with water rapidly destroying electronics is probably with highly ionised water such as sea water or water in the washing machine which has washing powder added.
Of course, it's worth pointing out in this case that as per the comments HZO claim they used water straight from the tap, so it's probably still an impressive enough achievement.
I'm curious how they went about sealing the external connectors (usb, hdmi), because surely those would need to be exposed and with the voltage present would act as points of corrosion. The pins on the Pi connectors are quite tightly spaced too. Maybe the AC nature of most of the signals helps there?