I think he's claiming that the lights are being enlarged and projected onto the atmosphere above the curvature of the earth, and we are seeing the tops of those projections peeking above the curve, all coincidentally aligned.
IMG
It strikes me that with whatever mechanism you choose to argue it is still a coincidence that the tops of those projections would be aligned in a plane like that. The projections would need to be projected to unique distances into the air, in accord with the drop of the Earth and distance from the observer, to get the tops of the projections to align.
That's pretty much it. EDIT - except the lights themselves are not being "enlarged"; the emissions of light from them are.
Without clarity in the video, the maker lacks the proof that he has a direct sightline to the lights.
In a similar fashion, you and I can see sunlight for a while after sunset, or for a while before sunrise. This is called twilight, and the duration of this can and has been calculated (see timeanddate.com) and predicted, based on the geometrical relationship of the bodies concerned.
You could do the same for the example in the video, to determine the geometric relationship that applies. You're halfway there with the diagram. Don't dismiss the geometry as "coincidence" - determine it for yourself.