Well, the main thing they did to contribute to the "look" of it was shoot all the original footage with a gawd-awful 70's-era six-point star filter on the lens. That's what caused almost all of the flares.
The other smearing, as Angelo pointed out, comes from the tubes either in the camera or in the telecine (I can't tell from the low-res clip if that was originated on film or video, but the smearing was caused electronically either by camera tubes or pre-digital era telecine tubes).
You can use Magic Bullet (a software plug-in from Red Giant) to create both custom flares and smears... as a plug-in for either After Effects or your NLE (we use it both in AE and in Premiere). Magic Bullet probably can't replicate that look exactly, but it could get you in the neighborhood.
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