This is usually called NaN-boxing and is often used to implement dynamic languages.
If I encode data into the exponent of these NaN values, propagate them around the internet, and decode them elsewhere.... is that a security risk? Or this just falls into the category of "weird encryption"
The original post seems really weird to me. I would have dismissed it as someone's hobby project, but... that doesn't seem like what it's trying to be.
NaNboxing lets you use less memory on certain use cases. Because memory access is slow and caches are fixed size, this is usually a performance win, even if you have to do a few extra ops on every access.