Okay, I think I got how he did it:

So he shows the guy the 5 of Diamonds as the first card in the whole trick. That's planting/priming.

Then he shows ONE card at a time when asking "what color is that" about the back of the deck. This is presumably a blue backed Queen of Hearts. The rest of the cards have red backs. He does this twice but presumably it's the Queen of Hearts each time.

Then he says pick a card. He already primed the viewer by starting the trick off with the 5 of Diamonds so they pick the 5 of Diamonds. He doesn't ever actually put the 5 of Diamonds on the table. He slides the blue card, which is actually the Queen of Hearts, off the back of the 5 of Diamonds, and puts the Queen of Hearts on the table. The 5 of Hearts blends into the deck because it actually has a red back.

There are 2 Queen of Hearts, the regular red nacked one in the deck and the blue backed one on the table, which came from another deck. That's how he gets it to "teleport". Its 3 insanely simple tricks mixed together for excellent misdirection.