The Collatz conjecture is saying that the programmed algorithm will eventually terminate and return true. Here the compiler optimized the code to always return true. Therefore the author jokingly assumed that the compiler must have proven the Collatz conjecture and the authors should be rewarded a million dollars.

In reality, the reason is that out of the two outcomes: true or infinite loop, the infinite loop violates the standard, and therefore, the result must be true. Another way to see it is that the only way for the code to be valid is if the programmer knows that the Collatz conjecture is true, and the compiler trusts the programmer, saying that the compiler knows the answer to the Collatz conjecture is a kind of circular reasoning.

There are other issues here: the numbers are bounded (a 128 bits integer), but the conjecture is not. And no million dollar prize have been assigned to this problem (it is not one of the millenium problems). Also, an infinite loop is not a result, it is actually the textbook example of an undecidable problem.