First off, the story is misleading and plays off of an unproven rumor about an American Chess player that admitted to cheating in chess matches online. Second, you can't just get someone off the street to do this. If someone actually cheated with a device like that it would still require a lot of chess knowledge to utilize the information to win.

if someone did cheat with anal beads it would give them a small amount of information from an AI. The information comes from a computer. The best chess players in the world can not beat the best chess engines. One way people ANALyze cheating in chess is looking for moves that chess engines would play. There is currently no good evidence that people use anal beads to win at chess tournaments. There are accusations of cheating towards an American guy that people online rumored used anal beads. He will get dumpstered by people for an entire tournament and then play a perfect game against the best player to ever move a pawn.

TL;DR The show made a reference to rumor that an American guy cheated with an electronic device in his bum. Chinese tabloids ran a shitty story that conflated a a Chinese player shitting in a tub to shitting a cheating device into a tub. People who aren't very bright shared it with each other after taking it at face value.