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They didn't have the code for the offensive program, they were creating the emulator to run it on a different architecture.
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> offensive program

Agreed.

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Which optimizer replaces a 64k loop with 64k instructions?

Ah, yes. Microsoft's!

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There is no indication that the compiler that produced the code was Microsoft's. Actually the article hints otherwise ("[...] whatever compiler was used to compile this code").
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Who has been validating that approach to solve their own optimization target?
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