It's there to keep this from happening:
The engine applies force (in the form of torque) to the rotor shaft, which turns the rotor head, which turns the rotor blades. Turning rotors generate lift which makes the whole contraption fly.
The hitch is that once the 'copter gets in the air, that torque works both ways. Newton's third law states that the torque doesn't just make the rotors turn in one direction, it also makes the fuselage want to rotate in the opposite direction and with the same amount of force.
The tail rotor counteracts that tendency by blowing in the direction opposite to what the fuselage is trying to turn in.
Until it doesn't.
This particular incident was a forest firefighting operation in China using a French-designed helicopter flown by Chi-Com army pilots. The gearbox didn't freeze up (you can see in the video that the tail rotor is still turning) but it could have just been freewheeling. It might have been that the tail rotor drive shaft failed or the pitch control mechanism on the rotors failed or froze up.
This illustrates why "long line" sling loading is one of the highest paying jobs in helicopter aviation. Because it's severely dangerous to be hovering that high off the ground with a basket of heavy goodies dangling below you on a hundred foot cable.
There's a lot of call for this kind of work in tall timber logging operations, like in the western US and Canada, because the 'copter can extract trees that have been felled while still hovering above the tops of the remaining trees. But you're not long for that line of work unless you have ace flying skills and balls of steel. And a little good luck wouldn't hurt.