Could you explain this?
The observer isn't a mystery, I agree. But the original comment seems spot on: if you are describing consciousness as a state of matter, then you're saying something like, "matter inherits a different set of qualities when it's in a consciousness state (as opposed to a solid or liquid state)." If the state change leads to a change of quality, then you're once again proclaiming consciousness as an object with observable qualities rather than a the observer without quality. This is fine if we're talking about an observable consciousness, but then who is that observer?
I agree with the original comment that this paper is nonsense. I'm surprised how many papers are spent discussing consciousness this way. In biological terms, fine. In physical terms, impossible.