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The author was probably referring to the code, which basically increases the length of the second item of any adjacent item pair to item length + default fade lenght/2 and moves it to item start - default fade lenght/2, which (concerning the item position) is the same as dragging the left item edge to the left.
Maybe the action should be reworded "SWS: Crossfade adjacent selected items (move edges of adjacent items)" ?
Thanks nofish and wol. Yes the action is referenced by _SWS_CROSSFADE. A concern would be users trying to find the action by filtering its name but that is moot because imo nobody will filter by the "move later items" part.