The guys from the video show us two drops - the first one simulating a drop from the pocket, and the second one from the ear. Thankfully, the handset remained almost perfect after the first drop, with no significant scratches to ruin its fancy glass panels. However, the second, higher drop cause severe damage to the back panel. As you know, both the front and back of the Nexus 4 are made of glass, which contributes to the feel of the handset, but allows for easier shattering. That's what happened with the Google Nexus 4 after the second drop in this video. Still, whether due to a stronger glass, or just luck, the front side remained undamaged, and the touchscreen and phone itself were perfectly usable.
This drop test comes to show us that LG has done a good job with the construction of the Nexus 4, as it is capable of surviving the ordinary everyday hits of life, though it's definitely not in rugged territory with those large glass surfaces.
And here's the video in question. Unfortunately, the guy talks in German, but it's one of those videos where you don't need to understand what's being said to know what's going on.