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RE: Researchers show Facebook’s ad tools can target a single user - TechCrunch
On Facebook, each person has some set of general parameters (age, region, various interests) that can be targeted for ads. The paper basically just says "there exists a set of parameters such that the total number of people in the targeted group is 1."
I think, advertisers can't get your identity. A bad actor would already have to know a lot about you to take advantage of this.
This is how I understood it, too. Basically, we're leaving a fingerprint by revealing our interests. The more we "Like" or react to, or even view, the stronger the fingerprint. And FB is giving its advertisers the ability to target and identify us based on that fingerprint.