I don't want to destroy someones dreams,but:
Its a morph, look at the towel on the left side of the pic.
The way I do my morphs is open 2 windows of the original, use the selection tool to create the area I am going to morph and open a third window allowing for extra room of the selected area.
This is where I will use the polygonal lasso tool to create the area I want to keep and delete the unwanted area with the cutting tool.
I then use the combination liquify tool and paste tool to create the morphed area,
Finally I paste the morphed area back on the copy of the original.
This way there isn't any distortion of the background.
Other than that it's a pretty good morph and I wish I had the original.