They added code to the #BIOS that, when signaled to do so by the operating system, would instruct the keyboard controller to reset the CPU. The BIOS would begin executing as in a normal reboot, but instead of its usual start-up routine, it would immediately hand control back to the operating system, now running in real mode.
Clever though this was, it was also terribly slow, and therefore most PC/AT software did not use the 286's new protected mode.