It does seem kind of counter-intuitive. Once the badger is underground they can't see where they're going anymore. Surely they use some other sense to navigate down there.
Right now the game treats it like a teleport for some reason.
Did you see the playthrough? That's by design. As others have said, it's pretty immersion breaking. Tunneling through granite, across a pit to emerge on the other side . . .
I'm not the CEO's psychoanalyst but my guess is that he enjoys taking an ironist's position. "Not taking the game seriously" seems subversive to him and therefore fun. "This shouldn't work but it does -- haha!"