As referee Ron Cherry explained:
On the previous play, we have an unusual ruling. The ball was blocked, caught, carried back into the end zone and declared dead by the defense. That play results in a one-point safety.Cherry has had the mic for other unique calls before, such as the collegiate "giving him the business" personal foul (a revival of NFL official Ben Dreith's "giving him the business down there" penalty) and a "graphics blocked" extra point review.
As for the Fiesta Bowl, the relevant rules are NCAA 8-1-1 and 8-3-2-d, which specify that a safety occuring during a try after touchdown is worth one point, as is a field goal during that stopped clock period. Furthermore, approved ruling (AR) 8-3-2-IX exemplifies a one-point safety, wherein the defense recovers at the two-yard line, fumbles into the end zone, recovers once again and is downed (one-point safety).
As broadcaster Brad Nessler explained, a similar play occurred during a 2004 Texas A&M vs. Texas game.
In NFHS high school, this would not be the case, as during a try, the ball shall become dead upon a turnover.
Wrap: Oregon Ducks vs. Kansas State Wildcats, 1/3/13
Video: Ducks benefit from one point safety after blocked kick attempt during Tostitos Fiesta Bowl (ESPN)