Alright, lets clear everything up:
This guy was suposedly getting a sex change in the near future of the videos creation, so decided to lop off his own genitals (penis and sac).
Second, yes he tied a turniquit, he (veru tightly from what I saw) around the sac and another around the wang, both as close to the body as he could get.
Did he die? I really don't know, I don't think so.
Was there blood? When he first cuts it, not really..
but towards the end there is VERY much blood.