I wonder if he had the exhaust valve brake? A TRUE "Jake brake"? Those pop loud with a straight exhaust. Only time I have ever seen a diesel backfire was when I had the timing chain a link off on my Polaris Diesel when I had replaced the head on the OHC engine. It was louder than ANY gasoline backfire I have ever heard and ONE pop (BOOM!) smoked up the entire shop! It ran like crap too. You would not want to do that to your engine. You may could make a propane injection system in the exhaust, with a spark plug ignition system.
I used to have an old gasoline (350/4bbl, 4 speed) Suburban in high school. We used to backfire our old gasoline vehicles all the time by cutting the switch off while going down the road, loading a little fuel into the exhaust and cutting the switch back on at the desired target (dog, horse, bicyclist, left lane lagger, friend we meet in the road, etc) and it would BOOM! God that was FUN! I taught several people how to do it with propane/gasoline forklifts and even the UPS guy when he used to drive a gasoline package truck. All the years of us doing this and the worst we ever did was blow off a few mufflers. Wasnever a problem with me with straight exhaust or glasspack mufflers. :-laf