Ok how'd he do this?

[LudwigPastorius]

5. When he starts there is a whole, folded paper with some stickum flaps on it in his left hand.

After the first tear, he moves the packet between the newly torn pieces. From there, he keeps tearing up the paper around where the folded packet is. Eventually, all the torn pieces are on one side (facing outward) and the untorn, folded paper is on the other (facing his chest).

The final moves are putting the adhesive flaps around the sides of the torn paper, so it is held together and adhered to the untorn folded paper.

He unfolds the untorn paper, and the debris, now in a neat bundle and stuck together, is hidden when he snaps the paper open.
He quickly folds the paper up, keeping the torn bits on the inside so they can't be seen.

...or, he's just a wizard.