I think they are probably using bytecode manipulation (ASM). I see some code that does the same thing here: https://github.com/BoxOfFlex/CynTweaks/blob/master/src/main/java/cynfoxwell/cyntweaks/glint/RenderEffectVisitor.java
It actually doesn't look that "difficult" to code up, but I'm not that familiar with doing byte code manipulation, and it isn't really a good way to make mods. Basically the guy has created some config options for a base color, whether you want it to change "rainbow mode" and a speed for the rainbow mode. Based on that, there is a field for the resulting color, and that seems to be injected somewhere (obviously wherever the glint color is stored/used in the vanilla code) I think in item renderer.
If that is too advanced, the next option I can think of is maybe you can have several colorized glint PNG stored and change the resource location based on the setting. You wouldn't want to do it quickly (like probably not good for rainbow effect) but could still be a user or code-based control. For armor for example, LayerArmorBase.ENCHANTED_ITEM_GLINT_BASE is the field but has protected scope so you maybe use reflection to access it.
Otherwise, you need to intercept the layers somehow. Not sure if there is an event that is targeted enough but there might be. But you could also do things like make your own replacement LayerBipedArmor class and put it into the RenderLivingBase.layerRenderers list. Again though this is protected scope so would likely need reflection.
Or maybe you can intercept elsewhere, like replacing the minecraft ItemRenderer with your own version.
Anyway, just saying that the rendering probably has some interesting places to intercept it, but you need to be pretty good with Java to track it down and implement it.
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