It looks like she cuts the fabric as shown in her first pic, then makes little vertical "fringe-like" snips halfway and rolls the fabric into a "roll". Finally, she puts them on a bobby pin that has the litlle platform for gluing. Maybe she spreads out the "petals" also.
Something similar to what was done here: http://www.instructables.com/id/Felt...ooch-Tutorial/
The bobby pins are like the ones shown here: http://www.etsy.com/listing/62000874...facet=supplies