I honestly have never seen this in my life. I was watching the game and remember freaking out because I didnt even think it was possible to score only 1 pt. Well, I guess I was proven wrong. Rather than copy and paste without credit, I'll quote Yahoo with the scoop.
Originally posted by Yahoo
In the Fiesta Bowl, Kansas State defensive lineman Javonta Boyd blocked an extra point after Oregon had taken a 31-10 lead in the third quarter. In the NFL the play would be dead, but it is a live ball in college. That's why the weirdness started.
The ball didn't make it into the end zone. Defensive end Ryan Mueller corralled it out of the air at about the 2-yard line. Knowing the Wildcats could return it for a 2-point conversion of their own, he retreated and tried to get around the end. His problem was, he had retreated into his own end zone.
Mueller was caught in the end zone, and as he was being dragged down he tried to lateral it to teammate Allen Chapman, who was brought down in the end zone.
If you knew what the ruling was, congratulations. It's from the dustiest pages of the rule book. If a defensive player goes back into his end zone after grabbing a missed conversion and is tackled there, it is a one-point safety. All other safeties, such as when an offensive player is tackled with the ball in the end zone, are worth two points.
A blog named Quirky Research listed four known one-point safeties in all levels of college football, and just two from Division I: from a NAIA Division II game in 1996, from a junior-college game in 1996, from a 2004 game between Texas and Texas A&M, and then the Fiesta Bowl was the fourth.