Horribly defended. At the end of the video, you can see the guy guarding James looking at the other defender with a "why the heck didn't you switch" look on his face
I understand what C.J. was trying to do, but in that instance there's no way in heck any team should let the presumptive POY in C-USA get an open lane to the basket with 0.4 seconds to go. They clearly made a mistake on the defense of the play. Danny said as much in his post-game comments.