no, it was a thing back in the 90's (and likely earlier.)
The goal was to write a program that was "impossible to read". Some of the winners are seriously creative. And it's very much just smat kids and their machines...
I remember one back in the day which wasn't obfuscated at all. It was clearly a simple utility. Except that it didn't do what you thought it did, it did something completely different. (alas I can't remember the details...)
There are a number of blog posts online and StackOverflow questions explaining IOCCC entries, and they generally seem to be built/obfuscated by hand. It's an art and it's far from trivial, which is one of the reasons why the contest exists :)
I remember one back in the day which wasn't obfuscated at all. It was clearly a simple utility. Except that it didn't do what you thought it did, it did something completely different. (alas I can't remember the details...)