No, this is not a hoax. This is a real Ducati Panigale 899 and that is the exhaust pipe believe it or not. The reason for the distasteful design is because of strict Japanese noise regulations. Thankfully most of the rest of the world wont have to bear witness to this horrific pipe, but I am more than sure private owners of the 899 in Japan will remove that drain pipe ASAP.
It does give testament to just how compact this machine is though.