The research write-up covers this question. They seem to have figured out how to interrupt the process by which the immune system is triggered to attack our own beta cells. (With this cure, these would be stem cells taken from our own pancreas and programmed to act as beta cells instead of other pancreatic cells.) As you know, Type 1 is a genetic disease and they appear to have determined how the defective gene(s) we have initiate the chemical process which leads to an immune response. They have or will have a way to intervene and stop this chemical process.
Getting the trigger process nailed down step by step looks like the really tricky part in terms of developing the actual therapeutic procedure with patients. It’s also the really groundbreaking part since they’ve already gotten stem cells to produce insulin.