i think theres an extra red joker on top of the deck from the start...then somehow when he sets the spectator cards on top of the deck they remain there, in between the blue joker. he then lifts the other 2 blue jokers, along with the red, displays them and using good technique makes them all appear to be blue...also when he cuts the deck and shows the 4 and 5 of diamonds, he is moving the joker and spectator cards to the middle of the deck...im not a magician, so dont flame me if thats way off
nice effect