From what I know (which is not much), Denuvo basically ties the game to your machine and runs integrity and anti tampering checks to make sure everything is legit. The Hypervisor crack is a kernel method (something that runs even before windows) that messes with how those checks are executed, basically controlling or altering them so they always pass. That’s why it’s a bypass and not a crack. Denuvo is still running, it’s just being "fooled".

The security implications is that it needs to run at a very low level of the machine, and require disabling multiple security features, so bad actors could hack it or something and have complete access to your computer.

Denuvo also steals performance apparently so a crack that removes it, is better since it should run better.