These aren't tiny people beneath a regular-sized blanket, but normal people under a huge warm and cozy wool blanket. That's real knitted work, made with massive knitting needles created for this purpose as well as thick wool batting. You can see more photos showing how Imgur user Otterknot crafted this amazing blanket.
-via Laughing Squid
If you like this, check out the original pattern/tutorial on how to make your own giganto-blanket at Nocturnal Knits (I should know, I wrote it!): http://nocturnalknits.com/giganto-blanket-faq/
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